Joe buys a trailer from a used-car dealership. On enquiry, the dealer tells him that the trailer is in great condition. However, three days later, the trailer breaks down
Investigation by Joe reveals that the trailer had seven previous owners and that the engine has been replaced thrice. An automobile expert tells Joe that the trailer is dangerous. Which of the following frauds would the dealer be liable for?
A) fraud in the factum
B) fraud in the inducement
C) fraud by concealment
D) misrepresentation of law
C
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Recently, companies have been ordered by governmental agencies to clean up environmental damages caused by business operations. How should costs incurred in these situations be treated?
a. If a legal obligation exists, the cost of restoring the property must be added to the asset account. b. As an expense entirely in one accounting period. c. As an amortized expense in the period the cost is incurred. d. Added to the asset, and then depreciated over 15 years.
Sales revenue for a sporting goods store amounted to $526,000 for the current period. All sales are on account and are subject to a sales tax of 10%. Which of the following would be included in the journal entry to record the sales transaction?
A) a debit to Sales Revenue for $526,000 B) a credit to Accounts Receivable for $526,000 C) a debit to Sales Tax Payable for $52,600 D) a debit to Accounts Receivable for $578,600
A modified rebuy may occur when a buyer is familiar with the existing product and supplier but may be looking for additional information. Perhaps new competitors or products have entered the market or the current supplier is not meeting expectations.
Answer the following statement true (T) or false (F)
What are the four types of change leaders mentioned in the book?
a. The emotional champion, the developmental strategist, the intuitive adapter, and the continuous improver b. The charismatic speaker, the quiet leader, the thoughtful relationship builder, and the small win maker c. The persuasive strategist, the intuitive planner, the brilliant thinker, and the ferocious fighter d. The developmental strategist, the charismatic speaker, the brilliant planner, and the intuitive improver