Authority That a Third Person, in View of the Circumstances

question 17

Multiple Choice

Authority that a third person, in view of the circumstances, the conduct of the parties, and a lack of notice or knowledge to the contrary, may reasonably consider to exist is known as:

• A) actual implied.
• B) apparent.
• C) actual express.
• D) authorized.

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Definitions:

Bank Reconciliation

The act of reconciling the cash account balances recorded in an organization's bookkeeping with the related data found on a bank statement.

Deposits in Transit

Funds that have been received and recorded by a business but not yet processed by the bank.

Service Charges

Fees charged to customers for specific services or as penalties for not meeting certain criteria such as minimum account balance requirements.

Internal Control Procedure

Processes undertaken by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.