Examine the financial statements, Financial Accounting

Assignment Help:

Your firm has been hired to examine the financial statements of Bonanza Development Corp. for possible irregularities.  As part of this task, you reviewed certain land transactions involving John Walters, who worked as an agent for Bonanza.  Bonanza feared the price of land would skyrocket if it became known that it was trying to purchase a large number of tracts of land to develop a shopping center near Flats, Nebraska.  It, therefore, instructed Walters not to disclose to prospective sellers that he was acting as an agent on its behalf.  None of the sellers asked Walters if he was an agent for anyone.  The agreement between Walters and Bonanza was in writing and signed by both parties.

Based on the above facts, answer the following questions as (1-6) True or False.

1.  Bonanza is an unidentified principal.

2.  Walters is personally liable on the contracts he enters into on behalf of Bonanza.

3.  Bonanza cannot enforce the contracts made by Walters secretly on its behalf.

4.  The sellers who entered into contracts with Walters can enforce the contracts against Walters, but not Bonanza.

5.  Walters had actual authority to enter into the contracts with the sellers.

6. Walters is not an agent of Bonanza since the prospective sellers did not know he was working for Bonanza.


Related Discussions:- Examine the financial statements

Discuss limitations of ratio analysis, Question : Financial analysts wi...

Question : Financial analysts will use ratios to compare performance of companies in the same industry. Lenders will frequently use ratio analysis to help them decide whethe

Calculation of profitability ratios, Calculation of Profitability ratios  ...

Calculation of Profitability ratios  -                     2008 2009 2010 G Net Sal

Accounts of trustees-trustees bank account, Accounts of trustees The t...

Accounts of trustees The trustee must keep proper books of account, which may be inspected by the creditors at any time. The cash book must be audited by the committee of insp

Key person insurance, For purposes of rules which apply to top heavy plans,...

For purposes of rules which apply to top heavy plans, a key employee: 1. An officer of employer earning more than $130,000; 2. An individual who owns more than 5 percent of e

Capita expenditure and revenue expenditure, The company selected a suitable...

The company selected a suitable site and commissioned a survey and valuation report, for which the fee was £1,500. On the basis of the report the site was acquired for £90,000. Sol

Ifrs guidelines, IFRS guidelines IFRSs Gives the guideline on the conte...

IFRS guidelines IFRSs Gives the guideline on the content and the accounting statements of certain events and transactions in the financial statements. The following IFRSs are r

Compare the alternatives on a total-annual-cost , The Rohr Company's old eq...

The Rohr Company's old equipment for making subassemblies is worn out. The company is considering two alternatives: a) Completely replacing the old equipment with new equipment

Investment appraisal, The business is considering two proposals for their p...

The business is considering two proposals for their promotions of the professional courses.Proposal one could give a stable return throughout the period. Proposal Two would give hi

our assumptions about consumer behavior, 5.    A stockholder named Sue mus...

5.    A stockholder named Sue must cast a vote for chair of the board. Sue prefers Mr. Lee to Ms. Doe, Ms. Doe to Mr. James, and Mr. James to Mr. Lee. a. Are Sue's preferences c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd