Answer:
C. Credit Balance of $ 1,000
Explanation:
Classic Artists' Services at the time of making a contract with maintenance service company will not make any entry in financial statements as there is no services taken at the moment.
At the end of each month starting from February Classic Artists' Services will recognize an maintenance expense and a liability of accrued maintenance of $ 500 ($ 2,000 ÷ 4).
Entry will be:
Dr: Maintenance Expense $ 500
Cr: Accrued Maintenance Payable $ 500.
This entry will continue till May 31.
So the balance on account payable account in March will be $ 1,000 ($500 for Feb + $ 500 for March)
Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because The activity is extremely risky
<h3>Option (C) is correct.</h3>
<u>Explanation:</u>
Excavation activity is an extremely risky activity. This activity has many accidents associated with it. every year many people die or get injured in accidents related to excavation. So due to the high risk associated with this strict liability is imposed on this activity.
Risks associated with excavation are explosion, gas escape, flooding, etc. Other dangers like hazardous atmospheres, the possibility of fatal accidents, Falling loads can also be there. These dangers are sudden and fail to give time to workers to escape. So before undertaking such activity permission must be obtained from the government.
I think it would be “oligopoly”
