Which of the Following Is a Valid Bailment

question 15

Multiple Choice

Which of the following is a valid bailment?

• A) babysitting your sister's child for the weekend
• B) house sitting your friend's house for the weekend
• C) feeding your neighbor's dog (who lives in the yard in a dog house) by tossing food over the fence
• D) putting your neighbor's car in your garage to shield it from a hail storm

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the company's resources.

Capital Account

An account showing the net worth of a business at a specific point in time, including the owner's investment and retained earnings.

Capital Balance

The amount of money or value of assets contributed by owners or partners to a business, reflecting their equity in the business.

Record Transaction

Recording transactions refers to the process of documenting financial transactions in the appropriate books of accounts as they occur, ensuring accurate financial records.