Which of the Following Expenses Is Classified as Accounts Payable

question 85

Multiple Choice

Which of the following expenses is classified as accounts payable?

• A) electricity charges
• B) sales commissions
• C) employee salaries
• D) interest on bonds
• E) loans from banks

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee for a beneficiary.

Apparent Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the third party.

Restatement (Third)

The third update to a set of model civil and criminal statutes designed to clarify, modernize, and otherwise improve American law.

Renunciation

Occurs when either party manifests to the other that he does not wish the agency to continue. This is done by the agent.