Gomez Service Company Paid Its First Installment on a Note

question 38

Multiple Choice

Gomez Service Company paid its first installment on a note payable of $2,000. How will this transaction affect the accounting equation?

• A) increase in liabilities (Notes Payable) and decrease in assets (Cash)
• B) decrease in assets (Cash) and decrease in owner's equity (Note Payable Expense)
• C) decrease in assets (Cash) and decrease in assets (Notes Receivable)
• D) decrease in assets (Cash) and decrease in liabilities (Notes Payable)

Recognize the generational differences in work centrality, values towards work-life balance, and attitude towards diversity.

Understand the concept and significance of cultural intelligence in global leadership and intercultural settings.

Identify the factors contributing to cultural distance and its impact on communication and organizational behavior theories.

Comprehend the role and characteristics of cultural dimensions, such as masculinity versus femininity, in comparing societies.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and runs the business, responsible for all its debts and liabilities.

Debt Financing

Borrowing money that must be repaid over time, with interest.

Collateral

is an asset pledged as security for the repayment of a loan, forfeitable in the case of default.

Corporation

A legal entity recognized by law as a separate "person" that can own assets, incur liabilities, and conduct business, often with the aim of generating profit for its shareholders.