Bob Owns a Business Delivering Coffee and Donuts Within the Downtown

question 16

Multiple Choice

Bob owns a business delivering coffee and donuts within the downtown area of the city.Smith Co.calls him to deliver a large quantity of his products to their local office.While taking a coffee urn through the Smith Co.'s office, Bob drops it on Lester, scalding him.Who is liable?

• A) Smith Co. and Bob are liable.
• B) Lester has to absorb the cost himself since he assumed the risk by working at Smith Co.
• C) Bob alone is liable.
• D) Only Smith Co. is liable.

Grasp the fundamentals of the perpetual inventory system.

Interpret and calculate credit terms and discounts.

Distinguish between purchase allowances, sales returns, and other adjustments.

Calculate and interpret financial ratios related to liquidity and profitability.