Which of the Following Statements Is Correct with Respect to the Creation

question 110

Multiple Choice

Which of the following statements is correct with respect to the creation of a bailment?

• A)For a bailment to be created,the property must be given with the understanding that payment would be given for the service.
• B)The duty of care imposed on the bailee in a bailment for value is usually that of a reasonable person in the circumstances.
• C)A bailment is the process provided for releasing people from jail before trial.
• D)A bailment is not created when the transfer of the property is only done incidentally,such as leaving a watch with a watchmaker for repair.
• E)Bailments can only be created through contracts.

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Definitions:

Credit Balance

A situation where the total credits in an account exceed the total debits, often indicating the amount owed to a creditor.

Debits

Accounting entries that increase an asset or expense account, or decrease a liability or equity account, on a company's balance sheet.

Revenue Account

An account that tracks the income generated from the sale of goods or services before any expenses are subtracted.

Asset Account

An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.