To Determine the Source of a Company's Assets, on Which

question 129

Multiple Choice

To determine the source of a company's assets, on which financial statement will you look?

• A)Balance sheet only
• B)Income statement only
• C)Both the balance sheet and the income statement
• D)Both the income statement and the statement of retained earnings

---

Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.

Bound

To be legally or morally obligated; often referring to the commitments made in a contract or agreement.

Purchased

Purchased refers to the acquisition of goods or services in exchange for money or other consideration.

Ratifying Contract

The act of formally approving an agreement to make it valid and binding, often after the fact.