1. Economic damages are the monetary compensation that is awarded in civil litigation, such as a breach of contract claim.
a. True
b. False

2. The purpose of _____ is to put an individual or entity in the economic position that would have occurred if not for a defendant’s wrongful conduct.
a. Punitive damages
b. Fiduciary damages
c. Restoration damages
d. Compensatory damages

3. Awards by a court to punish a defendant’s intentional or reckless behavior are:
a. Punitive damages
b. Fiduciary damages
c. Restoration damages
d. Compensatory damages

4. Which of the following are noneconomic damages?
a. Pain and suffering
b. Loss of companionship
c. Emotional distress
d. Loss of enjoyment of life
e. All of the above are noneconomic damages

5. The primary role of a forensic accountant engaged as an expert in a damages claim is to place a dollar value on the various damage components that have been identified.
a. True
b. False

6. An expert’s analysis of economic damages should be the same, whether he or she has been engaged by the plaintiff or defendant.
a. True
b. False

7. Determining the dollar value of compensatory dam-ages requires that the damages be:
a. Identified and calculated
b. The result of an event that has economic implications
c. Compensable by law and measurable within the realm of economics
d. Attributable to something and have an economic half- life

8. Lost earnings have two components, including:
a. Past lost earnings and current lost earnings
b. Past lost earnings and future lost earnings
c. Current lost earnings and recoverable lost earnings
d. None of the above

9. Household services such as cooking, cleaning, shop-ping, repairs, yard work, and management of house-hold finances have economic value.
a. True
b. False

10. The difference between pre- injury earnings and post-injury earnings is:
a. Based on the nature of the work involved
b. Not an economic concept used by forensic accountants
c. The basis for lost earnings
d. The basis for seeking a new college degree

11. The measurement of earnings growth can be related to all of the following factors except:
a. Inflation
b. Consistency of effort
c. Productivity
d. All of the above

  • CreatedMarch 04, 2015
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