Gilles Tampers with the Odometer of a Car He Is

question 18

Multiple Choice

Gilles tampers with the odometer of a car he is trying to sell. In order to convince the buyer that the car has run fewer miles than it actually has, he manually sets the odometer to the numbers of miles he wants displayed. In this scenario, Gilles is guilty of _____.

• A) fraud with intent to deceive
• B) fraud by silence
• C) duress
• D) caveat emptor

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Definitions:

Temporary Accounts

Accounts used to track transactions in a single accounting period, which are closed and transferred to permanent accounts at the end of the period.

Income Summary

An account used in the closing process that summarizes the revenue and expenses of an accounting period to determine the net income or loss.

Capital Account

An account showing the net worth of a business at a specific point, calculated as assets minus liabilities and preferred stock.

Revenues

The total income generated from normal business operations, often from the sale of goods and services.