When Determining Responsibility for Property Damage,what Is a Good Rule

question 34

Multiple Choice

When determining responsibility for property damage,what is a good rule of thumb to obey?

• A) Always purchase insurance.
• B) "Caveat emptor," or buyer beware.
• C) The real estate agent is always liable.
• D) The government will always cover the costs of the damage.
• E) The seller is never responsible.

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Definitions:

Cash Receipts Journal

A ledger where all cash inflows or receipts are recorded, usually including sales, loan proceeds, and interest income.

Cash Payments Journal

An accounting ledger that records all cash outflows or payments made by a business.

Free On Board

Free On Board (FOB) is a term used in international trade that indicates whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.

Journalize

Journalize is the act of recording business transactions in the accounting journals as part of the double-entry bookkeeping system, detailing debits and credits.