Able Was Engaged by Charlie as His Agent to Purchase

question 36

True/False

Able was engaged by Charlie as his agent to purchase a parcel of land for him.Able approached the owner of the land,and offered to sell the land for him as his agent if he would pay a commission on the sale.The owner agreed,and the sale was arranged with Charlie.Without disclosing details of the transaction,Able collected a commission on the sale from both Charlie and the landowner.
-The owner of the property,who also thought that Able was his agent,would be entitled to recover the commission he paid to Able.

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Definitions:

Adjusting Entry

At the end of an accounting timeframe, records are made to attribute income and spending to the specific period in which they were incurred.

Accumulated Depreciation

The total sum of depreciation for a fixed asset that has been charged to expense since the asset was acquired and placed into service.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any accumulated depreciation.

Equipment Cost

The total amount spent on purchasing equipment, including the purchase price, taxes, shipping, and installation fees.