Fact Pattern 15-1

question 12

Multiple Choice

Fact Pattern 15-1
Roz and Sara work as clerks in Trina's Nu Clothes Shop. Trina withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Roz and Sara are not authorized to modify the prices or other terms of a sale at the shop.
-Refer to Fact Pattern 15-1. Trina authorizes Roz to sell clothes at remote locations at prices that Liz negotiates in those locations. With respect to sales at those locations, Roz is

• A) an independent contractor.
• B) not Trina's agent or employee, or an independent contractor.
• C) Trina's agent and employee.
• D) Trina's employee only.

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Definitions:

Payment

A transaction in which money is exchanged for goods or services.

Purchase

The process of purchasing products, services, or assets by paying money or something of similar value.

Merchandise

Goods that are bought and sold in the normal course of business, typically in a retail or wholesale setting.

Credit

An accounting entry that increases liabilities and equity accounts or decreases assets and expense accounts, recorded on the right side of a ledger.