For a Price, Recycle LLC Agrees to Empty the Dumpster

question 50

Multiple Choice

For a price, Recycle LLC agrees to empty the dumpster behind Sushi Café. Recycle delegates this duty to Trash Inc. Sushi is

• A)the obligor.
• B)a third party beneficiary.
• C)the obligee.
• D)the delegatee.

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Designations for accounts or job positions that indicate if they are expected to last indefinitely or have a fixed duration, respectively.

Gross Method

An accounting method for recording purchases at the invoice amount without deducting any discounts offered.

Periodic Method

An inventory accounting system where updates to inventory accounts and cost of goods sold are made periodically at the end of a reporting period.