Which of the Following Is True of a Principal-Independent Contractor

question 80

Multiple Choice

Which of the following is true of a principal-independent contractor relationship?

• A) Principals are bound by the authorized contracts of their independent contractors.
• B) Independent contractors cannot be authorized by principals.
• C) Independent contractors are employees of the principals.
• D) Principals cannot directly employ independent contractors.

---

Definitions:

Communicating Accounting

The process of effectively conveying financial information and analyses to stakeholders through various means such as reports and presentations.

Financial Information System

A computerized system that collects, processes, stores, and reports financial data to assist in decision-making and control.

Dollars and Cents

The basic units of currency in many countries, including the United States, representing the monetary value of goods, services, or financial transactions.

Accounting Information

Data related to the financial transactions and status of an organization that is used for analysis, planning, and decision-making.