Which of the Following Is True of Subagents

question 13

Multiple Choice

Which of the following is true of subagents?

• A)They must be appointed by the principal,though they report to the agent.
• B)They are considered to be agents of the agent,but not of the principal himself.
• C)Subagents do not have the authority to bind a principal,but can bind the agent.
• D)For a subagency to exist,an agent must have the authority to make the subagent his agent.

Calculate translation of financial statements into Canadian dollars under the temporal method.

Differentiate between ASPE and IFRS reporting requirements for foreign currency translation.

Analyze the impact of exchange rates on financial statements translation.

Determine the appropriate translation method based on a subsidiary's operational and financial relationship with the parent company.

---

Definitions:

Retained Earnings Restriction

Limitations or requirements placed on the portion of earnings not distributed as dividends but kept by the company for reinvestment.

Share Capital

The total value of a company's shares of stock that have been authorized, issued, and purchased by investors.

Financial Statements

Formal records that outline the financial activities and conditions of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Retained Earnings

Funds that are not distributed as dividends but are reserved by the company to reinvest in its business, pay off debt, or save for future use.