A gratuitous agent:
a. is a paid agent.
b. is subject to the same duty of loyalty as other agents.
c. has no duty of diligence.
d. need not be reimbursed for her expenses.
b
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Failure to record amounts earned for services provided to customers but not yet paid results in which of the following
a. Net income being overstated b. No effect on total assets c. Stockholders' equity being overstated d. Total assets being understated
Which of the following is an example of a cost that varies in total as the number of units produced changes?
A) Salary of a production supervisor B) Direct materials cost C) Property taxes on factory buildings D) Straight-line depreciation on factory equipment
Courts may award damages called quantum meruit, which means
A)"as much as he deserves." B)"to the letter of the law." C)"let the buyer beware." D)"something for something."
In 20Y1, Ms. Graves transferred appreciated property to KL Partnership in exchange for an ownership interest in the partnership. She deliberately waited until 20Y3 before taking cash out of the partnership. Ms. Graves may have been trying to prevent the IRS from applying the:
A. Substance over form doctrine B. Step transaction doctrine C. Economic substance doctrine D. Business purpose doctrine