If Revenue Is Not Recognized at the Time of Sale

question 65

Multiple Choice

If revenue is not recognized at the time of sale, which of the following accounts may be affected at the time of sale?

• A) I
• B) II
• C) III
• D) IV

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Definitions:

Undisclosed Principal

A party in a contract whose identity is unknown to the third party at the time the contract is made.

Unauthorized Agent

An individual who acts on behalf of another party without being granted the legal or official authority to do so.

Respondeat Superior

A legal doctrine holding employers liable for the actions of their employees performed within the scope of their employment.

Agent's Torts

Wrongful acts committed by an agent or employee that result in liability for the employer or principal.