Table 4.1 Ruff Sandpaper Co

question 139

Multiple Choice

Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
-All of the following are operating cash flows EXCEPT

• A) net profit/earnings after tax.
• B) increase or decrease in current liabilities.
• C) increase or decrease in fixed assets.
• D) depreciation expense.

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Definitions:

Listing Agreement

A contract between a property owner and a real estate agent, authorizing the agent to act on the owner’s behalf in the sale of the property.

Privity of Contract

A principle in contract law stating that only parties involved in the contract have the right to sue to enforce their rights or claim damages.

Commission

A fee paid for services, typically a percentage of the transaction value, to an agent or salesperson for facilitating or completing a sale.

Agreement of Purchase and Sale

A legally binding contract between a buyer and seller detailing the terms and conditions of the sale of property.