Under the ________ Test, the Principal Is Liable for Any

question 58

Multiple Choice

Under the ________ test, the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

• A) work-related
• B) motivation
• C) promotional
• D) self-dealing

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Definitions:

Retrospective Adjustments

Adjustments made to the financial statements of prior periods when adopting a new accounting principle, as if that principle had always been applied.

Salvage Value

The estimated residual value of an asset after its useful life is over.

Straight-Line Method

A method of calculating depreciation of an asset which spreads the cost evenly across the useful life of the asset.

Prior Period Adjustment

Adjustments made to the financial statements to correct errors or inaccuracies from previous periods.