Ratification Can Occur in Which of the Following Ways

question 12

Multiple Choice

Ratification can occur in which of the following ways?

• A) Through express language
• B) As implied from conduct
• C) Through failure to make a timely disaffirmance
• D) All of these.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Loss

The negative result from operations or other transactions when costs and expenses exceed revenues.

Unit Product Cost

The total cost (including materials, labor, and overhead) to produce a single unit of product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.