Which of the Following Statements Is True About Apparent Authority

question 16

Multiple Choice

Which of the following statements is true about apparent authority?

• A) Only a general agent can have apparent authority.
• B) Only a special agent can have apparent authority.
• C) If the agent justifiably believed he or she had authority, this authority would be apparent.
• D) If a third party justifiably believed the agent had authority, the agent's authority would be apparent.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and disposal.

Journal Entry

A record in accounting that signifies a transaction and affects the balance sheet and income statement.

Inventory Write-down

A reduction in the value of inventory to reflect its current market value below its listed cost.

Net Income

The net income of a company once all costs and taxes are deducted from the total earnings.