The Tom Smith Corporation Has the Following Items: Cash, $5,000;

question 34

Multiple Choice

The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long -term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Current liabilities for this Corporation are

• A) $45,000.
• B) $55,000.
• C) $95,000.
• D) $155,000.
• E) $190,000.

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Definitions:

Agency Relationship

A legal relationship wherein one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement, making the contract legally binding.

Apparent Authority

A situation where a person appears to have been given the power by a business to act on its behalf, even if no formal authority has been granted.

Manifest Consent

Clearly and unmistakably expressed agreement or approval to an action or proposal.