__________ Liable on Contracts with Third Persons

question 31

Multiple Choice

__________ liable on contracts with third persons.

• A) Agents may intentionally make themselves
• B) Agents are never able to make themselves
• C) Agents are always
• D) None of the above statements are true.

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Definitions:

Financial Statements

Compiled reports detailing the financial activities and position of a business, person, or other entity.

Accrual Basis

A financial recording strategy where income and costs are documented at the point they are generated or incurred, irrespective of the timing of cash transactions.

Accounting Principles

The standardized guidelines and rules that govern financial accounting and reporting practices.

External Decision Makers

Individuals or entities outside a company, such as investors or creditors, who use the company's financial information to make decisions.