Answer:
Facts of the case:
A client of a staffing company has hired the employees to conduct its business activities. The workers are hired, paid and offered with other benefits by the firm. The firm also supervises the employees and provides necessary inputs to accomplish the job. The client has right to direct the staffing firm workers to perform the task according to their needs. However this right is not frequently exercised by the client.
An employer has an accessibility to hire or procure the human asset in direct or indirect manner in the present case, it the indirect hiring of the employee through staffing firm.
When an employee work for a staffing company, he or she gets paid and provided with a right to complain about the client regarding its manner of possessing clients, unethical contractual salaries etc.
In the present scenario, it not clear whether the employee is hired on contractual basis. If the employees are hired for contractual basis, the staffing firm would be the employer of the workers in the case of terminating them. If the employees were hired for permanent position, then the employees were terminated by the client itself as the client would be the employer of workers.
Answer:
B. Weston is preparing to increase production, while Riley is preparing to decrease production
Explanation:
I think it' Price but i'm not sure
Answer:
B. It will not be enforced due to the statute of frauds.
Explanation:
Jim and Sue ''orally agreed to how the marital assets would be split if they divorced'', but however did not sign any agreement that makes the contract valid. Thus, the contract will not be enforced due to the statute of frauds. A statute of frauds, simply means a contract without sufficient written evidence agreed and signed by parties to the contract.
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
