When a Person Hires a Worker to Make Improvements on Real

question 20

Multiple Choice

When a person hires a worker to make improvements on real property but is later unable to pay the worker, the worker can create a[n] ________ lien on the person's improved real property.

• A) Mechanic's
• B) Approved
• C) Constructive
• D) Improvement
• E) Acknowledged

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Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold during the period.

Inventory Value

The total cost or market value of all the goods held by a company that are ready or will be ready for sale.

FIFO Inventory

An accounting method where the first items added to inventory are the first ones considered sold.

Net Realizable Value

The estimated selling price of goods minus the cost of completion and the costs necessary to make the sale.