Carl Loans Dan $1,500 for Dan's Honeymoon

question 49

Multiple Choice

Carl loans Dan $1,500 for Dan's honeymoon.Dan gives Carl his ruby ring as security for the loan and after a year,tells Carl he may as well sell it to recoup the $1,500.When Dan's wife hears of this,she persuades Dan to call Carl and get back the ring.Can Carl sell it anyway?

• A) No,because Carl's agency has been revoked
• B) No,because an unreasonable amount of time has elapsed
• C) Yes,because Carl has apparent authority
• D) Yes,because Dan cannot terminate this agency

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Definitions:

General Ledger

The comprehensive set of accounts that records all transactions of a business, serving as the foundation for preparing financial statements.

Accounting Time Periods

The specific intervals or time frames for which financial information is reported, such as monthly, quarterly, or annually.

Interim Periods

Shorter reporting periods within a fiscal year, such as quarters or months, used by companies to provide timely financial information.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively.