Which Role Does a Properly Linked Account Not Perform for a Supplier

question 14

Multiple Choice

Which role does a properly linked account not perform for a supplier invoice -

• A) allows all subsidiary ledgers to be updated with one amount
• B) allows HST to be recorded
• C) allows freight expense to be recorded
• D) allows purchase discounts to be recorded

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Definitions:

Agent Liability

The legal responsibility of an agent to act in the best interest of their principal, facing consequences for failure to comply.

Apparent Authority

The power that a third party perceives an agent to have, based on the principal's representations, leading the third party to reasonably believe that the agent is authorized.

Undisclosed Principal

A person whose existence is unknown to the third party in a contract made by an agent on their behalf.

Apparent Authority

The power that a third party perceives an agent has over the principal, based on the principal's behavior.