Gomez Service Company paid their first installment on their Notes Payable in the amount of $2,000. How will this transaction affect the accounting equation?
A) Increase Liabilities (Notes Payable) and decrease Assets (Cash)
B) Decrease Assets (Cash) and decrease Owner's equity (Note Payable Expense)
C) Decrease Assets (Cash) and decrease Assets (Notes Receivable)
D) Decrease Assets (Cash) and decrease Liabilities (Notes Payable)
D
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Surveillance is usually used to investigate:
a. Theft acts. b. Concealment possibilities. c. Conversion possibilities. d. Key internal controls.
Barter is an example of a countertrade
Indicate whether the statement is true or false
Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not avoid hitting her. What is Chris's best defense to the charge of negligence?
A) Mindy had a mental deficiency. B) Chris was not negligent since he did not have a statutory duty to keep his brakes in top condition. C) Mindy illegally crossed in the middle of the street, which was a superseding cause of the accident. D) Chris was lawfully seeking a parking place and did not see her jump out.
Philip Laws leased an apartment from Candice Sutton. Laws had notified Sutton on more than one occasion that the wooden steps to his apartment were decaying and in need of repair. Laws claimed that he had to leave the outside light on to avoid portions
of the steps that no longer would bear his weight when he came in at night. Sutton promised to repair the steps while Laws was away on a business trip. Accordingly, Laws did not leave lights on during his absence. When he returned three nights later, Laws was injured when one of the steps broke under his weight as he was entering his apartment. Laws sued Sutton. Sutton replied that she should not bear liability for Laws' injury because Laws knew of the condition of the steps and had not taken the customary precaution of lighting the area. Based on what you have learned in this chapter, decide the case.