An Agency That Occurs When a Principal and an Agent

question 28

Multiple Choice

An agency that occurs when a principal and an agent do not expressly create an agency,but is inferred from the conduct of the parties is known as ________.

• A) apparent agency
• B) agency by ratification
• C) implied agency
• D) agency coupled with an interest

Identify and differentiate between types of contingencies and their treatment in financial statements.

Understand the criteria for classifying liabilities as current or long-term.

Distinguish between accounting practices for contingencies under GAAP and IFRS.

Describe the treatment of short-term obligations expected to be refinanced.

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Definitions:

Technology Adoption

The process by which individuals and organizations begin to use and integrate new technology into their operations.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, subsidies, or prohibitions to encourage international trade.

Tied Aid

A form of foreign aid that requires the recipient country to spend the funds in the country of the donor or in a group of specified countries.

Low-priced Food

Food items that are available at relatively low prices, often due to subsidies or lower quality.