Principals Are Not Bound by the Authorized Contracts of Their

question 99

True/False

Principals are not bound by the authorized contracts of their independent contractors.

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Definitions:

Note Payable

A promissory note from the maker’s point of view.

Interest Accrued

The accumulation of interest on a loan or bond that has been earned but not yet paid.

Periodic Inventory Method

An inventory accounting method where physical counts are used to determine the cost of goods sold and ending inventory at specific intervals.

Petty Cash

A small amount of cash on hand used for covering minor expenses in an organization.