A Principal Is Not Bound to Contracts Made by an Apparent

question 41

True/False

A principal is not bound to contracts made by an apparent agency.

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time of its purchase or acquisition.

Representationally Faithful

A qualitative characteristic of financial information that ensures the reported data accurately reflects the economic transactions and events.

Going Concern Assumption

The Going Concern Assumption is an accounting principle that assumes a company will continue to operate and not go bankrupt or be liquidated in the foreseeable future.

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts.