Which of the Following Statements Is Not True Concerning the Rule

question 40

Multiple Choice

Which of the following statements is not true concerning the rule nemo dat quod non habet?

• A)The phrase means no one gives what one does not have.
• B)A purchaser of goods from a seller who does not own the goods cannot acquire ownership of the goods.
• C)A purchaser of goods from a seller who does not own the goods cannot pass on ownership of the goods.
• D)A seller who is not the owner of goods cannot pass on title to a buyer even where the seller is the authorised agent of the owner of the goods.

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Definitions:

Standard Price

A predetermined cost that companies use to value inventory and cost of goods sold, often used in budgeting and performance evaluation.

Actual Price

The real or market price at which an asset or service is bought or sold.

Materials Price Variance

Materials price variance is the difference between the actual cost of materials used in production and the expected (or standard) cost, indicating efficient materials purchasing.

AQ × AP

Represents the multiplication of the Actual Quantity (AQ) by the Actual Price (AP), often used in financial and operational analyses.