Henry Is a Carpenter by Trade Who Has His Own

question 51

Multiple Choice

Henry is a carpenter by trade who has his own tools and his own truck.Henry works for a construction company,and after each job,he provides the company with an invoice for the work he has performed.In this case,Henry is

• A)both an agent of the company and an independent contractor.
• B)an employee of the company.
• C)an independent contractor.
• D)an agent of the company.
• E)both an agent and an employee of the company.

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Definitions:

Retained Earnings

The cumulative earnings of a company that have not been distributed to shareholders as dividends, reinvested back into the company.

Unearned Revenue

Money received by a company from a customer for products or services to be delivered or performed in the future.

Prepaid Rent

Prepaid rent refers to payments made in advance for rent, recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Notes Payable

Financial obligations or loans evidenced by promissory notes that a company or individual owes and is required to pay in the future.