I Should Not Record _____ on an Income and Expense

question 154

Multiple Choice

I should not record _____ on an income and expense statement for the period from January 1 to June 30.

• A) an $800 refrigerator bought on credit on May 30
• B) a paid March telephone bill
• C) health insurance premiums deducted from monthly pay checks
• D) checking account service charges
• E) groceries bought and paid for in June

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Definitions:

Principal

The main party to a transaction, contract, or financial instrument who has the primary interest and rights.

Negligent And Intentional Acts

Legal terms referring to actions causing harm or damage, with negligence lacking intent and intentional acts being deliberate.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or agency.

Liability

A legal responsibility or obligation, typically referring to the duty to compensate for harm or loss caused to another party.