Prentice and Mercedes Are Partners in a Catering Business

question 25

Multiple Choice

Prentice and Mercedes are partners in a catering business.The law of agency:

• A) will only affect their business if they hire independent contractors.
• B) will only affect their business if they hire employees.
• C) has no significance for their business.
• D) is important to their business because both Prentice and Mercedes are agents of the partnership and as such have the authority to represent and bind the business in all usual transactions of that partnership.

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Definitions:

IFRS

International Financial Reporting Standards are a globally-adopted set of accounting standards aimed at making financial statements comparable across international boundaries.

Actuarial Gains And Losses

These are the differences that result from changes in actuarial assumptions and the difference between expected and actual performance on pension plans and other post-retirement benefits.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that outline how financial statements should be prepared and disclosed globally.

Net Interest

The difference between the revenue from interests received on various investments and the expenses from paying interest on borrowings.