Which Accounting Convention Has the Effect That the Employees Will

question 25

Multiple Choice

Which accounting convention has the effect that the employees will not appear as an asset on the entity's statement of financial position?

• A)Money measurement convention.
• B)Accounting period convention.
• C)Stable monetary unit convention.
• D)Entity convention.

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Definitions:

Independent Contractor

An individual or entity hired to perform a specific task or project yet maintains control over how the task is carried out, distinguishing them from employees.

Agency Law

Governs the relationship between individuals or entities (agents) who agree to act on behalf of another (principal) for certain activities.

Employer-Employee Relationship

The formal relationship between an employer who provides remuneration and an employee who provides labor or services.

General Power of Attorney

A legal document that grants one individual the authority to act on behalf of another person in a wide range of legal and financial matters.