Which of the Following Would Be the Likely Result If

question 59

Multiple Choice

Which of the following would be the likely result if Sam sues Trudy for the $40 she owes him for the book?

• A) Sam will win because Trudy cannot avoid her obligations through a delegation.
• B) Sam will win but only because he was not aware of the assignment.
• C) Sam will win but only because the contract was for an amount under $1,000.
• D) Sam will win only if Betty cannot be found for service of process.
• E) Trudy will win because she delegated the duty of payment to Betty.

---

Definitions:

Cost Flow Assumptions

Accounting methods that determine how costs are assigned to inventory and cost of goods sold, such as FIFO, LIFO, and average cost.

FIFO

An inventory valuation method where the first items produced or purchased are the first sold, leading to inventory being valued at approximate recent costs.

LIFO

An inventory valuation method that assumes the last items added to the inventory are the first ones to be sold ("Last In, First Out").

Weighted Average

A calculation that takes into account the different degrees of importance of the numbers in a dataset, making some values count more heavily than others.