Ben Manages a Warehouse and Its Inventory for Coffee Shops

question 55

Multiple Choice

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred​

• A) ​from the position Ben occupies.
• B) ​by a reasonable party with whom Coffee Shops does business.
• C) ​to contradict Ben's express authority.
• D) ​under no circumstances.

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Definitions:

Note Matures

The point in time when a promissory note, bond, or other financial instrument's principal is due to be paid back.

Financial Statement

A written report which quantitatively describes the financial health of a company; it includes the income statement, balance sheet, statement of cash flows, and statement of retained earnings.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the accounting rules.

Temporary/Permanent

Categories used to distinguish assets, liabilities, and equity items based on their duration in financial statements; temporary items fluctuate regularly while permanent items typically remain constant over time.