Mike's organization manages the logistics for a petroleum company. Last month, one of its tankers spilled about one hundred tons of oil in the ocean while transporting it
Mike meets with a lawyer to understand his organization's liability in the accident, and he is relieved to hear that all the damages have to be paid by the petroleum company. Which of the following statements best describes the conclusion in this scenario?
A) Mike's firm is liable for the damages and must pay the company.
B) Mike's firm is partially responsible for the damages.
C) Mike's firm is not responsible for the damages.
D) Mike's firm is solely responsible for the damages.
C
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In general partnership, each partner is personally liable for:
a. only the partnership debts that he or she personally created b. his or her proportionate share of all partnership debts regardless of which partner incurred that debt c. the total debts of the partnership, even if he or she was unaware of those debts d. the debts of the partnership up to the amount he or she invested in the firm e. all personal and partnership debts incurred by any partner, even if he or she was unaware of those debts
If actual direct labor cost was $7,560 and standard labor cost was $7,000, the journal entry to record this would include:
A. A credit to the labor rate variance account of $560 and a credit to Direct Labor of $7,000. B. A debit to the labor rate variance account of $560 and a debit to Direct Labor of $7,000. C. A credit to the labor rate variance account of $560 and a debit to Direct Labor of $7,560. D. A debit to the labor rate variance account of $560 and a credit to Direct Labor of $7,560.