Explain the Relevance of SARA

question 74

Essay

Explain the relevance of SARA.What is it, and how is it used?

Identify when and how an agent has authority to act on behalf of a principal.

Distinguish between disclosed, partially disclosed, and undisclosed principals and their liabilities.

Recognize the consequences of unauthorized actions by agents.

Comprehend the principles surrounding the termination of agency relationships.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods or services sold by a company, including material and labor expenses.

Sales on Account

Transactions where goods are sold but payment is deferred, creating receivables for the seller.

Quick Ratio

The Quick Ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Marketable Securities

Financial instruments that can be easily converted into cash, often used for short-term investments.