If a Principal Notifies a Third Party That an Agency

question 67

Multiple Choice

If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?

• A) It ends immediately
• B) 24 hours
• C) 48 hours
• D) 7 days
• E) 10 days

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Definitions:

Debit

An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.