An Agent for Which of These Would Have Authority to Act

question 9

Multiple Choice

An agent for which of these would have authority to act?

• A)An unincorporated company
• B)A minor
• C)An incompetent person
• D)None of these

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Definitions:

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.

Freight Charges

Costs associated with transporting goods from one location to another, paid by the shipper or the receiver, depending on the terms of sale.

Perpetual Inventory System

An inventory management system where updates are made continuously to the inventory records to reflect sales, purchases, and returns in real-time.

Credit Memo

A credit memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes the seller under the terms of an earlier invoice.