Charlie Is a Plumber Who Uses His Own Tools to Work

question 49

Multiple Choice

Charlie is a plumber who uses his own tools to work. He is generally hired for specific jobs for short durations. He receives lump sums after completing these jobs. Which of the following statements is true of this scenario?

• A) Charlie's physical conduct is controlled by his employer.
• B) Charlie is the principal in an agency relationship.
• C) Charlie is an independent contractor.
• D) Charlie can work for only one employer at a time.

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Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events, excluding any changes resulting from investments by and distributions to equity claimholders.

GAAP

Generally Accepted Accounting Principles, a collection of standardized guidelines and practices for financial accounting in the United States to ensure consistency and transparency.

Comparative Financial Statements

These are financial statements that present data for multiple periods side by side to facilitate comparison and analysis of financial performance over time.

Retroactively Adjusted

Adjustments made to financial statements or other data for previous periods in light of new information or to correct errors.