Which of the Following Is True About a Durable Power

question 3

Multiple Choice

Which of the following is true about a durable power of attorney?

• A) It is only effective as long as the principal is able.
• B) It remains effective even though the principal is incapacitated.
• C) It is effective even when the agency is an oral agreement.
• D) It is only effective if the agent is a certified lawyer.

---

Definitions:

Capital Assets

Long-term assets acquired or owned by a company that are used in its operations to generate income.

Consolidated Financial Statements

Financial statements that show the financial position, results of operations, and cash flows of a parent company and its subsidiaries as a single economic entity.

Direct Method

a way of preparing the cash flow statement where actual cash flows from operating activities are reported rather than adjusting net income on an accrual basis.

Consolidation Process

The procedure of combining the financial statements of separate subsidiary entities into those of the parent company to present as one financial statement.