Joshua Thomas Corporation manufactures and retails computer hardware. The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business
Since the corporation paid for the car, it was recorded in its books as an asset. Which of the following concepts or principles of accounting did the corporation violate?
A) monetary unit assumption
B) economic entity assumption
C) cost principle
D) going concern assumption
B
Business
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Which of the following is true about a special power of attorney?
A) It is an implied form of the power of attorney. B) It limits the agents powers to those enumerated in the agreement. C) It allows the agent to act in any matters on the principal's behalf. D) It only allows certified lawyers to be agents.
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