Mackenzie,an Agent for Lindsay,signs an Agreement with Kirk on Lindsay's

question 19

Multiple Choice

Mackenzie,an agent for Lindsay,signs an agreement with Kirk on Lindsay's behalf but ne?glects to tell her that the agreement requires the payment of a certain tax.The government prosecutes Lindsay for failing to pay the tax.She is

• A)liable,because notice to Mackenzie is notice to Lindsay.
• B)liable,because notice to Kirk is notice to Lindsay.
• C)not liable,because Mackenzie did not tell Lindsay about the tax.
• D)not liable,because Kirk did not tell Lindsay about the tax.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold or used first.

Inflation

The velocity at which the aggregate cost of goods and services ascends, thereby reducing the efficacy of purchasing power.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory, also known as the acid-test ratio.

Current Ratio

A liquidity metric that measures a company’s ability to pay short-term obligations with its current assets.