Stanley Operates a Dog-Walking Service for a Number of Wealthy

question 85

Multiple Choice

Stanley operates a dog-walking service for a number of wealthy residents in the Hightower subdivision.As a result of recently taking on a number of new clients,Stanley cannot personally perform all of his obligations under each contract with each resident so he arranges for third parties to do some of the dog walking.In these circumstances,Stanley cannot:

• A)unilaterally assign his contractual obligations to the third parties to escape liability.
• B)pay the third parties any more than the original contract price.
• C)fail to advise his customers that third parties are performing the work.
• D)hire his own employees to do the work.
• E)enter into oral contracts with the third parties.

Apply the periodic inventory system to purchase transactions.

Identify the correct accounts to debit and credit in various transactions.

Recognize the treatment and recording of purchase discounts under different methods.

Understand the accounting treatment for payment of vouchers within and after discount periods.

---

Definitions:

Taxi Drivers

Individuals whose profession involves driving passengers to their desired destinations in a taxi.

London

The capital and largest city of England and the United Kingdom, known for its rich history, architecture, arts, and diverse culture.

Strategy

A planned series of actions aiming at achieving specific goals or solving a problem.

Unskilled Person

An individual lacking professional skills or abilities, especially in relation to a particular task or job.