In an Agency Relationship, One Party Called the Principal Agrees

question 140

True/False

In an agency relationship, one party called the principal agrees to represent or act for another called the agent .

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Definitions:

Total Assets

The sum of all assets owned by a business, including cash, inventory, equipment, and real estate.

Average Collection Period

A ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivables.

Date of Sale

The specific day on which a transaction is completed and ownership of goods or assets is transferred.

Date of Payment

The specific day on which a payment is due or processed.