Mary Scoot Was Hired to Manage the Cactus Cart, a Tiny

question 97

Multiple Choice

Mary Scoot was hired to manage the Cactus Cart, a tiny kiosk located in Sky Harbor Airport in Phoenix. No specific duties were listed, but the business owner who hired Mary told her, "Just sell the plants and deposit the money." Mary would have the implied authority to:

• A) take checks as payment.
• B) change the business name.
• C) sell the kiosk.
• D) all of the above

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Definitions:

Annual Accounting Period

The 12-month period a company uses for accounting purposes to report its financial performance.

Prepaid Rent

The payment made for rent before it's due, recorded as an asset on the balance sheet until it's recognized as an expense in the period to which it relates.

Adjusting Entry

An entry made in the accounts to correct or allocate income and expenses to the appropriate accounting period.

Three Months Rent

An accounting entry typically categorized as a prepaid expense, representing payment for rent before it's due.