Jan Hires Duncan to Act as Her Agent in Acquiring

question 47

Multiple Choice

Jan hires Duncan to act as her agent in acquiring some property for the development of a new subdivision she is planning that will be an elegant planned community. Jan instructs Duncan that he is not to say he is working for her or, for that matter, that he is working for anyone. If Duncan enters into a contract for land for Jan that is the parcel she wanted:

• A)Duncan only is liable on the contract for the purchase of the land.
• B)Jan can never be held liable for the land because Duncan acted in his name.
• C)both Jan and Duncan are liable on the contract for the purchase of land.
• D)it is fraud to conceal the identity of a party to a contract.
• E)None of the above

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Definitions:

Ending Inventory

The cumulative worth of all products a company holds in inventory at the conclusion of a financial period.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases or sales have occurred.

Accounts Receivable Turnover

A financial ratio measuring how many times a company collects its average accounts receivable balance within a certain period.

Average Accounts Receivable

An accounting metric that represents the average amount of money owed to a company by its customers over a specific time period.