Mark and Nancy Enter into a Contract for the Sale

question 59

Multiple Choice

Mark and Nancy enter into a contract for the sale of Mark's apartment for which Nancy agrees to pay $100,000. Nancy assigns her right to buy the apartment to Owen. Owen is

• A) the obligor.
• B) the delegator.
• C) the assignee.
• D) the assignor.

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Definitions:

Perpetual Inventory System

An inventory management approach where records of inventory levels are updated on a continuous basis as transactions occur.

Merchandise Inventory

Merchandise Inventory refers to the products a company has in stock that are ready to be sold, represented as an asset on the balance sheet.

Cost of Goods Sold

This is the direct costs attributable to the production of the goods sold in a company.

Perpetual Inventory System

An inventory management system where records of inventory quantities are updated on a continuous basis as transactions occur.