At December 31, 2011, an Enterprise Fund Has the Following

question 14

Multiple Choice

At December 31, 2011, an Enterprise Fund has the following adjusted accounts outstanding: When preparing the closing entry for the temporary accounts at December 31, 2011, the Enterprise Fund's accountant will

• A) credit Retained Earnings $8,000.
• B) credit Net Cash, $8,000.
• C) credit Net Assets, Unrestricted $8,000.
• D) credit Invested Capital Assets, Net of Related Debt, $8,000.

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Definitions:

Liable

Subject to legal obligation, where an individual or entity is responsible for fulfilling certain duties or compensating for harm caused to others.

Conditions Precedent

Specific conditions that must be fulfilled before a contract or agreement becomes legally binding.

Negotiable Instrument

An official written promise to pay a specified amount of money, which can be demanded at any time or payable at an agreed upon time, identifying the payer on the document.

Secondary Liability

A legal responsibility whereby one party is held liable for the actions of a third party, typically in copyright or partnership cases.