Which of the Following Statements Is Not True Regarding Agency

question 51

Multiple Choice

Which of the following statements is not true regarding agency funds?

• A) Agency funds use modified accrual accounting.
• B) Agency funds report only assets and liabilities; no fund equities, revenues, or expenditures are recorded.
• C) Agency funds are reported in the fiduciary funds Statement of Fiduciary Net Assets.
• D) None of the above; all are true.

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Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions or representations of the principal.

Misrepresented Warranty

A false or misleading statement about the condition or functionality of a product that can lead to a breach of warranty claim.

Respondeat Superior

A legal doctrine that holds an employer liable for the actions of an employee when the actions occur within the scope of employment.

Employer's Liability

The legal responsibility of employers to compensate employees for injuries or damages incurred in the course of employment.