Inferior Company,which Is Based on South Carolina,makes and Sells Products

question 25

Multiple Choice

Inferior Company,which is based on South Carolina,makes and sells products that are poorly made.Jack,who is a resident of North Carolina,buys an Inferior product and suffers harm through its use.The diversity of citizenship between these parties means that

• A)federal and state courts have concurrent jurisdiction.
• B)federal courts have exclusive jurisdiction.
• C)no court has jurisdiction.
• D)state courts have exclusive jurisdiction.

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Definitions:

Purchases Journal

A financial record keeping a chronological list of all purchases made by a business, especially on credit.

General Ledger

A comprehensive record of all financial transactions that occur within a company, used to compile financial statements.

Posting

The procedure of transferring journal entries to the ledger accounts.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.