Ted Is an Accountant at ABC Company

question 30

Multiple Choice

Ted is an accountant at ABC Company. He calculates the difference between total revenues and total costs before tax. Ted calculates the:

• A) net profit.
• B) capital turnover.
• C) cost of goods sold.
• D) return on sales.
• E) invested capital.

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Definitions:

Expressly Bind

To explicitly or distinctly commit or obligate oneself or an entity to an agreement or course of action.

Unidentified Principal

Refers to a situation in agency law where an agent acts on behalf of a principal, but the identity of the principal is not disclosed to the third party.

Actual Authority

The express or implied power granted by a principal to its agent, allowing the agent to perform acts on the principal's behalf, which legally binds the principal with third parties.

Apparent Authority

The appearance or assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.