Statements or Declarations of an Agent

question 36

Multiple Choice

Statements or declarations of an agent:

• A) will not bind the principal.
• B) will bind the principal if the statements were made by an agent while transacting business within the scope of agency authority.
• C) will not bind the principal if made after performance of the transaction concerned.
• D) none of the above.

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Definitions:

Budgeted Income Statement

The Budgeted Income Statement is a financial forecast that projects a company’s revenues, expenses, and net income for a specific period.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Collections

The process of gathering all cash receipts and payments, including from sales, financing, or investment activities.

Credit Customers

Customers who purchase goods or services on credit, with an agreement to pay at a later date.