The Term Apparent Authority Is Used When There Is: ______

question 9

Multiple Choice

The term apparent authority is used when there is: ______.

• A) no interaction between the principal and third persons.
• B) actual authority.
• C) only the appearance of authority and that appearance of authority was created by the principal.
• D) only the appearance of authority and that appearance of authority was created by the agent.

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Definitions:

Notes Receivable

Claims for which formal agreements of credit are made between borrowers and lenders, often involving interest.

Journal Entry

A record that captures all the financial transactions of a business, displaying debits and credits in the accounting system.

Aging Method

An accounting technique used to estimate the amount of a company's bad debts based on the age of its receivables.

Bad Debts Expense

The cost recognized by businesses for uncollectible accounts receivable due to customer defaults.