Relevance and Cost Are Two Constraints in Accounting

question 150

True/False

Relevance and cost are two constraints in accounting.

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Definitions:

Apparent Authority

The perception created by the actions of a principal, leading third parties to believe that an agent has authority to act on behalf of the principal.

Warranties

Legally binding guarantees provided by a seller to a buyer, assuring that a product or service meets certain quality and performance standards.

Limitation

A legal restriction or time frame within which certain actions must be taken, such as filing lawsuits or making claims, to remain valid or enforceable.

Directly Liable

Refers to the legal responsibility that falls directly on an individual or entity due to their actions or omissions.