Luminara Has Been Given Two Weeks' Notice by Knight Services

question 13

Multiple Choice

Luminara has been given two weeks' notice by Knight Services Inc, her employer. While she is upset and hurt, she also wants to make sure that she lands on her feet and that she will not be without an income for long, if at all. She therefore has asked you to comment on several potential outcomes that she has predicted. Which of the following statements is TRUE?

• A) unless she signed an agreement to the contrary, Luminara will not owe any obligations to Knight Services once she leaves the company
• B) as an employee, Luminara is subject to fiduciary obligations that will survive her departure from the company
• C) Luminara will be entitled to a settlement package.
• D) Luminara cannot take customer lists belonging to Knight Services, but she is entitled to memorize the information on those lists
• E) none of the above

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Definitions:

Supplies Used

The cost of supplies consumed during a specific period, often recorded as an expense on the income statement.

Expense

Expense is the cost of operations that a company incurs to generate revenue, encompassing everything from rent and salaries to utilities and materials.

Periodic Inventory Method

An accounting method which involves physically counting the inventory at specific intervals to determine the cost of goods sold and the ending inventory balance.