Gomez Service Company Paid Its First Installment on a Note

question 11

Multiple Choice

Gomez Service Company paid its first installment on a note payable in the amount of $2,000.How will this transaction affect the accounting equation?

• A)increase liabilities Notes Payable and decrease assets Cash
• B)decrease assets Cash and decrease stockholders' equity Note Payable Expense
• C)decrease assets Cash and decrease assets Notes Receivable
• D)decrease assets Cash and decrease liabilities Notes Payable

Grasp the importance of similarity and shared tasks in group cohesion and performance.

Conceptualize evaluation apprehension and its role in influencing performance under observation.

Examine the impact of group size and composition on individual contribution and effort.

Understand the concept of social loafing and conditions that increase or decrease its occurrence.

---

Definitions:

Over Insure

The condition of having insurance coverage that exceeds the value of the insured item or risk, leading to unnecessary higher premium costs.

Deductible

A sum specified in an insurance policy that the insured individual must pay before being compensated for a claim; deductibles reduce moral hazard.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a fixed-income security above its face value.

Insurance Companies

Organizations that provide risk management by compensating for financial losses in exchange for premium payments.