Which of the Following Transactions Affects the Liabilities for Gravette

question 25

Multiple Choice

Which of the following transactions affects the liabilities for Gravette, Inc.?

• A) Supplies are purchased for cash by Gravette.
• B) Gravette places an order for merchandise with a supplier; the merchandise will be shipped to Ernest White in 60 days.
• C) The owners of Gravette invest $100,000 in the company.
• D) Payment is made on a bank loan which Gravette had obtained 6 months ago.

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Definitions:

Clan

A group of people united by actual or perceived kinship and descent, sharing a common ancestor and often organizing within larger tribal or social structures.

Ancestor

A person from whom one is descended, particularly from a distant past.

Kindred

A group of people related by blood or through marriage, often extended to include all relatives.

EGO

The part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.