Which of the Following Accounts Would Appear on the Balance

question 49

Multiple Choice

Which of the following accounts would appear on the balance sheet?

• A) Accumulated Depreciation
• B) Depreciation Expense
• C) Fees Earned
• D) None of these are correct.

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.

Agent

A person who is performing an act for another person, called the principal

Principal

A person for whom another person, called the agent, is performing some act.

Asymmetric Information

A condition in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance in the transaction.