Market Company and Nick Enter into a Contract for Nick

question 25

Multiple Choice

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is​

• A) ​a delegation.
• B) ​an assignment.
• C) ​a third party beneficiary contract.
• D) ​prohibited.

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Definitions:

Lost Or Stolen Goods

This term refers to inventory items that are missing due to theft or misplacement and represent a loss to the business.

Sales Returns and Allowances

A reduction in sales revenue that occurs when customers return products or receive discounts for unsatisfactory goods.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, providing insight into operational efficiency.

Periodic Inventory System

An accounting approach where inventory and cost of goods sold are calculated at set periods, rather than continuously.