An Agent Who Does Something That They Were Not in Fact

question 54

Multiple Choice

An agent who does something that they were not in fact authorised to do, but had apparent authority to do, will:

• A)Have breached the duty to follow the principal's instructions.
• B)Not be liable to the principal.
• C)Be liable to criminal prosecution.
• D)Be liable to the principal and to the third party, if either has suffered damage.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Ending Work in Process

Refers to the items still in production and not yet ready for sale at the end of an accounting period.

Total Units

The entire quantity produced, held in inventory, or sold by a business in a specified period.

Conversion Cost

Costs incurred during the transformation of raw materials into finished products, mainly consisting of direct labor and manufacturing overhead.