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a. What is an undisclosed principal?
b. What is a partially disclosed principal?
c. What liability does an agent have to a third party when the principal is either undisclosed or partially disclosed?
d. Dale is asked to be an agent for Phil, but Phil does not wish third parties to know that Dale represents him. In light of your answer to part (c), why would Dale want to be an agent for Phil? Why would Phil wish that third parties not know his identity? Explain.
Closing Entries
Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.
Ledger
A book or other collection of financial accounts where all transactions are summarized and recorded.
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time, offering a snapshot of its financial condition.
Post-Closing Trial Balance
A listing of all company account balances after closing entries are made, ensuring the ledger is balanced before starting a new accounting period.
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