Charlie Owns a Small Parcel of Land in Toronto

question 8

Multiple Choice

Charlie owns a small parcel of land in Toronto.He wants his sister,who lives within a short distance of the land,to sell the parcel for him.In order for his sister to be able to sign all the real estate documents,Charlie needs to authorize

• A)a lawyer to act as principal during the closing.
• B)a broker to bring the parties together.
• C)a sales agent to carry out his instructions.
• D)power of attorney for his sister.
• E)a local real estate agent to make out the papers.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account on a company's balance sheet that represents the amount of receivables the company expects may not be collected due to customer defaults.

Contra Asset

An account listed in a company's balance sheet that is used to reduce the balance of a related asset account, showing the amount that effectively reduces the original asset's value.

Maturity

The time at which a financial obligation must be repaid or settled in full.

Notes Receivable

Financial assets representing amounts owed to a company by others, typically from loans or credit extended, evidenced by promissory notes.