Rev Motor Company Buys Plugs and Points from Sparkplugs Inc

question 1

Multiple Choice

Rev Motor Company buys plugs and points from Sparkplugs Inc. and puts them in Rev vehicles without changing their composition. If the parts are defective, strictly liable for any damage caused by the defects may be

• A)Rev only.
• B)Rev, Sparkplugs, and the owner and operator of the Rev vehicle.
• C)Rev and Sparkplugs.
• D)Sparkplugs only.

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Definitions:

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, managed through a specified fund.

Purpose

The reason for which something is done or created or for which something exists.

General Journal Entry

A general journal entry is a record of financial transactions that includes details such as date, accounts impacted, amounts, and a brief description of the transaction.

Petty Cash Fund

A petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.