Suppose That You Are Walking to Work, Alone, and You

question 103

Multiple Choice

Suppose that you are walking to work, alone, and you notice a spooky man crawling on the ground alongside a building, holding a gun. He is clearly up to no good. In which of the following cases would you be MOST likely to do something about it (such as call 9-1-1) ?

• A) No one else around and you are in a rush.
• B) No one else around and you are NOT in a rush.
• C) A lot of other people are around and you are in a rush.
• D) A lot of other people are around and you are NOT in a rush.

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Definitions:

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.

Withdrawal Account

An account from which funds can be withdrawn by the account holder; in the context of business partnerships, it refers to an account used by an owner or partner to draw funds from the business.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.