Which of the Following Is True Regarding Tina's Statement That

question 30

Multiple Choice

Which of the following is true regarding Tina's statement that she was entitled to the ring because she would not have given it to Becca if she had known the true value?

• A) Tina is entitled to ownership of the ring if she can prove that she did not realize its true value.
• B) Tina is entitled to ownership of the ring only if she can prove that she did not realize its true value, and also that there was a difference of at least $1,000 between what she believed the value to be and its true value.
• C) Tina is entitled to ownership of the ring only if a jury determines that she was not negligent in failing to recognize its value.
• D) Tina is not entitled to ownership of the ring because she admitted that there was at least some chance (one in a billion) that it was a genuine diamond.
• E) Being ignorant of the value of the ring does not entitle Tina to ownership of it.

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Definitions:

Time Period Assumption

An accounting principle that states a business's activities can be divided into specific time periods, such as months, quarters, or years for reporting purposes.

Securities and Exchange Commission

An independent federal agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

IASB

stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).

Measurement (Cost) Principle

An accounting principle that states that accounting information should be based on actual cost.