An agency through operation of law is established:
a. by a written contractual agreement of the parties
b. by ratification of the agent's activities by the principal c. by the application of the doctrine of estoppel
d. when an emergency exists and the "agent's" actions are in the public interest e. none of the other choices
d
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The Statements of Financial Accounting Concepts are intended to provide the Financial Accounting Standards Board with a common foundation and the basic underlying reasoning on which to consider the merits of various alternative accounting principles
Indicate whether the statement is true or false
Under an operating lease, the lessee records which of the following?
A) Rent expense B) Capital lease obligations C) Depreciation on the leased asset D) Capital lease assets
The U.S. government will pay Simpson Company $2,500,000 each six months, equal to 2.5% of the $100 million face amount of the treasury bonds (5% annual coupon rate, paid in two installments each year), and will repay the $100 million at the end of five years. At the time Simpson Company purchases the bonds, the market prices these bonds to yield Simpson Company 6% annually (3% each six months)
The bonds are classified as held to maturity and Simpson Company would classify this investment as a(n) _____on its _____ because it intends to hold the securities for _____. a. current asset; balance sheet; less than one year b. current asset; income statement; less than one year c. noncurrent asset; balance sheet; more than one year d. noncurrent asset; income statement; more than one year e. current asset; statement of cash flows; less than one year
Where a partner acts without either actual or apparent authority, the partnership:
A) is bound under all circumstances, since the partner is an agent of the partnership. B) is bound only if it ratifies the act. C) is bound only if the third person did not know the partner was acting on behalf of the partnership. D) cannot be bound.