According to the Law of Agency, an agent is generally held to have the imputed authority of his principal when dealing with third parties. That imputed authority:
A: Includes power of attorney;
B: Always binds the principal to terms negotiated on his behalf;
C: Usually binds the principal if within the scope of authority granted to the agent;
D: Implies a fiduciary obligations to third parties.
Answer: C: Usually binds the principal if within the scope of authority granted to the agent;
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When the total fixed costs increase, the breakeven point ________
A) increases B) decreases C) decreases proportionately D) remains the same
Hokies, Inc. acquired a desk for $500. The estimated salvage value is $50 and the estimated life is 5 years. What journal entry should Hokies make to record depreciation expense?
a. depreciation expense 90 accumulated depreciation 90 b. depreciation expense 90 desk 90 c. depreciation expense 100 desk 100 d. accumulated depreciation 90 depreciation expense 90 e. depreciation expense 100 accumulated depreciation 100