Diego Performs a Contract with Elwood to Add a Swimming

question 13

Multiple Choice

Diego performs a contract with Elwood to add a swimming pool to Elwood's property,but Elwood does not pay.Diego can file a lien on Elwood's property if,from the last date labor or materials were provided,he acts

• A)immediately.
• B)within 60 to 120 days.
• C)within two years.
• D)within a reasonable time.

---

Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting all its liabilities, representing the ownership interest of shareholders.

Owner's Investments

Capital or assets that an owner puts into his company, enhancing the financial base of the business.

Expenses

The economic costs that a business incurs through its operations to earn revenue.

Purchase Inventory

The process by which a business buys goods and materials for use in producing its products or for resale to customers.