A Company Began Operations and Purchased $5,000 of Supplies

question 18

Multiple Choice

A company began operations and purchased $5,000 of supplies. By year end, $2,700 was still on hand. The adjusting entry at year end would include a:

• A)debit to supplies of $5,000.
• B)credit to supplies for $2,700.
• C)credit to supplies for $2,300.
• D)debit to supplies expense for $2,700.

Outline the principles of negligence, including the standard of proof required in negligence actions.

Evaluate legal principles related to the duty of third parties to take affirmative action to prevent harm.

Understand contributory negligence and the doctrine of last clear chance in the context of negligence law.

Comprehend the objective nature of the reasonable person standard in determining negligence.

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Definitions:

Debtor

An individual or entity that owes a debt to another; the opposite party being a creditor.

Secured Creditor

A creditor that has a legal claim, called a lien, on the debtor's assets, ensuring priority payment if the debtor defaults on the obligation.

Unsecured Creditor

A creditor who extends credit without requiring specific collateral to secure the debt owed by the borrower.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized if the loan is not repaid.