A Purchase of Supplies, to Be Used Over Several Months

question 136

Multiple Choice

A purchase of supplies, to be used over several months, on credit is recorded with a

• A) debit to Supplies Expense.
• B) credit to Supplies.
• C) debit to Cash.
• D) credit to Accounts Payable.

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Definitions:

Palsgraf Case

A landmark case in American tort law that established the principle that negligence requires foreseeability of harm to the plaintiff.

Prima Facie

A Latin term meaning "at first sight" or "on its face," referring to evidence that, unless rebutted, is sufficient to prove a particular proposition or fact.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Reasonable Standard Of Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.