In an undisclosed agency, the agent is not liable to the third party with whom the agent has transacted business
Indicate whether the statement is true or false
F
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Which of the following items need not be reported separately at the bottom of the income statement?
a. Profitability ratios b. Discontinued operations c. Extraordinary gains and losses d. Cumulative effect of a change in accounting principle
With respect to reimbursement grant accounting, which of the following statements is true?
A. Under GASB, revenues are recorded when monies are received from the granting government. B. Under GASB, excess cash at the end of the project must be returned to the granting government. C. Under GASB, the granting government makes an initial payment to the receiving government and then makes reimbursement payments thereafter. D. Under GASB, revenues are recorded at the same time that expenditures are incurred.
Which of the following best describes the amount of misstatement an auditor is willing to accept and still judge that an account balance is not materially misstated?
a. Tolerable misstatement. b. Performance materiality. c. A clearly trivial amount. d. Significant risk.
An agency arrangement based on the conduct of the two parties is what type of agency?
A) Inherent B) Implied C) Express D) Apparent