An Agent Should Keep Any Funds of the Principal That

question 59

Multiple Choice

An agent should keep any funds of the principal that they acquire:

• A)separate from their own.
• B)in a safe.
• C)until they get paid.
• D)in multiple currencies.

Understand the major components and purposes of internal control systems.

Describe the characteristics and advantages of a voucher system.

Understand the principles and benefits of electronic funds transfers (EFT).

Apply journal entry preparation skills for cash transactions, including cash collections and petty cash fund management.

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Definitions:

Inheriting

Inheriting involves receiving assets, property, or other legal rights from someone who has passed away, as stipulated by a will or prevailing laws of succession.

Millionaire

An individual whose net worth or wealth is equal to or exceeds one million units of currency.

Well-being

The state of being comfortable, healthy, or happy, reflecting the overall quality of an individual's life.

Philosopher

An individual who seeks knowledge and understanding about fundamental questions of existence, ethics, knowledge, and reality.