To Bind the Third Party,restrictions on an Agent's Authority Must

question 106

Multiple Choice

To bind the third party,restrictions on an agent's authority must be:

• A)known to the third party.
• B)in contract form between the agent and principal.
• C)in writing.
• D)none of the above

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Definitions:

Accounts Receivable

Funds that are owed to a company by customers for goods or services delivered or used but not yet paid for.

Bad Debt Expense

An expense recognized when a company determines that a customer's debt is no longer collectible.

Cash Realizable Value

The amount of money that could be realized from assets if they were sold, after settling any associated costs.

Allowance Method

The allowance method is an accounting technique that enables companies to anticipate and adjust for expected bad debts or credit losses in their financial statements.