Which of the Following Statements Is True of Delegation of Duties

question 15

Multiple Choice

Which of the following statements is true of delegation of duties?

• A) A promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them.
• B) If the duty to be performed could be performed fully by many different persons, it is delegable.
• C) All duties are delegable, like assignments.
• D) If performance depends on the personal skill, it can be delegated.

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Definitions:

Effective Income Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total tax expense by taxable income.

Accrual-based Net Income

The measure of a company's financial performance that includes all earned revenues and incurred expenses, recognized as they are earned or incurred, rather than when cash is received or paid.

Initial Value Method

A financial accounting method where investments are recorded at their purchase cost without subsequent adjustment for changes in fair value.

Markup

The amount added to the cost price of goods to cover overhead and profit.