On June 1, 2018 Ted Leo Buys a Copier Machine

question 11

Multiple Choice

On June 1, 2018 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

• A) use two journal entries.
• B) make a compound entry.
• C) make a simple entry.
• D) list the credit entries first, which is proper form for this type of transaction.

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Definitions:

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading another to enter into a contract.

Innocent

Relates to the state of not being guilty of a crime or other wrong act.

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, leading to liability for any harm resulted from such careless actions.

Deceit

This tort involves the fraudulent and intentional misleading of another person causing injury.