Dizzy Is Not Edwina's Agent but Enters into a Contract

question 15

Multiple Choice

Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf.Edwina later contacts Frida to affirm the contract.This is

• A)an agency by agreement.
• B)an agency by estoppel.
• C)anagency by ratification.
• D)not the creation of an agency relationship.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guides the financial reporting for companies outside of the United States.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards for financial reporting in the United States.

Pledging

The act of providing assets as security or collateral for a debt.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.