Assets Are Generally Divided Into

question 58

Multiple Choice

Assets are generally divided into:

• A) current assets and solvent assets
• B) current assets and reliable assets
• C) non-current assets and solvent assets
• D) current assets and non-current assets

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Definitions:

Implied Authority

This refers to the power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization’s agency agreement, even if not explicitly granted.

Duty of Accounting

The obligation of a party (usually a fiduciary) to keep accurate records and report financial activity to relevant stakeholders or authorities.

Agent Owe

The duty or obligation an agent has to act in the best interest of the principal, including loyalty, care, and full disclosure.

Principal

In finance, the principal is the initial amount of a loan or the amount of an investment excluding any interest or profit earned.