Which of the Following Is an Implied Authority of a Partner

question 36

Multiple Choice

Which of the following is an implied authority of a partner winding up the business of an accounting partnership?

• A)Entering into new contracts made after the dissolution
• B)Disposing of the partnership's excess supplies
• C)Making a contract to audit the financial records of a new client
• D)Borrowing money in the name of the partnership

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Definitions:

Investment

The purchase of new plants, new equipment, new buildings, and new residences, plus net additions to inventories.

Nominal GDP

The total market value of all goods and services produced in a country in a given period, measured using current prices without adjusting for inflation.

Current-Year Prices

Prices of goods and services measured during the same year they are produced, not adjusted for inflation; also referred to as "nominal prices."

GDP Price Index

A measure of the change in prices of all new, domestically produced, final goods and services in an economy.