Apparent Authority May Be Based on Which of the Following

question 54

Multiple Choice

Apparent authority may be based on which of the following?

• A) Only words of the principal or acts of the principal
• B) Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time
• C) Words of the principal,acts of the principal,or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time
• D) Express contractual authority only

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Definitions:

Expenses

Outflows of resources or incurrences of liabilities that result in a decrease in the equity of a company, other than distributions to owners.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check the arithmetic accuracy of the accounts.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.