Which of the Following Types of Relationships Exists When a Person

question 95

Multiple Choice

Which of the following types of relationships exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on his or her behalf?

• A)employer-employee relationship
• B)employer-agent relationship
• C)principal-third party relationship
• D)principal-agent relationship

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Definitions:

Journal Entry

A record in accounting that represents a transaction in the books of account, consisting of debits and credits.

Prepaid Rent

An asset account on the balance sheet representing rent payments made in advance of the rental period.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Accrued Fees

Charges that have been incurred but not yet paid or recorded at the end of a reporting period, representing liabilities on the balance sheet.