Which of the Following Is a Similarity Between a Partially

question 58

Multiple Choice

Which of the following is a similarity between a partially disclosed and an undisclosed agency?

• A) The principal and the agent are jointly liable to the third party.
• B) The principal's identity is disclosed to the third party.
• C) The agent's identity is disclosed to the third party.
• D) The method of payment by the third party is the same.

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Definitions:

Normal Balance

The side of an account (debit or credit) on which increases to the account are recorded, determined by the account type.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity over a period of time.

Permanent/Temporary

Categories of accounts in accounting where permanent accounts appear on the balance sheet and temporary accounts are closed at year's end, affecting income summary.

Normal Balance

The side (debit or credit) of an account that is increased, indicating the typical balance of that account in accordance with the double-entry bookkeeping system.