Alfred Owns a Bed and Breakfast Called Al's Quaint B&B

question 71

Multiple Choice

Alfred owns a bed and breakfast called Al's Quaint B&B in Somewhere,Maine.Rita Ritz has decided to stay at Al's for a week.She displays her wealth by wearing a four-carat diamond ring,a ruby necklace and bracelet,and a Versace purse.Al's has never had any reports of thefts in the 26 years he's operated his bed and breakfast.In the event of a theft,which of the following can Al do in order to limit his liability for the loss from the theft?

• A) He must provide a safe for his guests valuables.
• B) He must make the safe available for his guests.
• C) He must post a sign of his limit of liability notifying his guests of the same.
• D) All of these are correct.
• E) None of these are correct.

---

Definitions:

Partial Balance Sheet

A financial statement that shows a company's financial position for a specific part of the accounting period, detailing assets, liabilities, and equity.

Total Current Assets

The aggregate amount of all assets expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business.

Assets Due

Typically refers to amounts or assets scheduled for receipt or payment within a predefined period; however, "Due" often relates to liabilities (e.g., accounts payable). NO precise term called "Assets Due" in standard financial terminology without further context.

90-Day Note

A short-term debt instrument that matures in 90 days, typically used for financing immediate needs.