In January 2008, Tim's Gyms, Inc

question 152

Multiple Choice

In January 2008, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2008, Tim spent $200,000 on new machines. During 2008, Tim's net investment totalled

• A) $1 million.
• B) $100,000.
• C) $200,000.
• D) $300,000.

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Definitions:

Debtor-Creditor Relationship

A financial relationship where one party (the debtor) owes a debt to another party (the creditor).

Drawee

The drawee is the party, usually a bank, required to pay the monetary amount stated on a draft or check upon its presentation.

Nonnegotiable

Unable to be bought, sold, exchanged, or transferred to another party.

Express Contract

A clearly stated agreement between parties, with terms explicitly mentioned either orally or in writing.