The Test of an Agent's Express Authority Is

question 29

Multiple Choice

The test of an agent's express authority is:

• A)the justifiable belief of the agent.
• B)the specific language the principal used in granting the authority.
• C)the technical label given to an agent.
• D)the surrounding circumstances such as the words and conduct of the parties.

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Definitions:

Depreciation Expense

The methodical distribution of a physical asset's expense over its lifespan, indicative of the asset's usage or deterioration.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life as an expense, reflecting wear and tear or obsolescence.

Plant Assets

Long-term tangible assets used in the operation of a business, not expected to be converted into cash within a year, such as buildings and machinery.

Year Ended

Refers to the conclusion of a 12-month accounting period, marking the end of a company's financial year.