Memphis Music Makers Incorporated Has a Stated Purpose to Sell

question 30

Multiple Choice

Memphis Music Makers Incorporated has a stated purpose to sell musical instruments.If chief executive officer Tabitha contracts with Frenzied Firearms in Memphis Music Makers's name to sell a shotgun,she has likely committed

• A)an ultra vires act.
• B)a de facto act.
• C)a de jure act.
• D)a legal act.

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Definitions:

Net Purchases

Net purchases refer to the total cost of purchases after adjusting for returns, allowances, and discounts over a specific period.

Cost Of Goods Available For Sale

The total cost of inventory available to be sold during a given period, including both beginning inventory and purchases made.

Purchase Returns

Goods returned by the buyer to the seller, usually because they are defective or not as per the order placed.

Freight In

A cost associated with transporting goods into a business, often included in the cost of goods sold because it directly relates to the cost of bringing inventory to the business.