Which of the Following Leads to the Termination of an Agency

question 34

Multiple Choice

Which of the following leads to the termination of an agency by operation of law?

• A)loss or destruction of the subject matter of the agency
• B)death of either the principal or agent
• C)loss of a required qualification
• D)a change in the law

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Definitions:

Basic Formula

Typically refers to the accounting equation: Assets = Liabilities + Equity.

Calculating Interest

The process of determining the monetary charge for borrowing money or the return on investment for savings, typically through a predetermined formula.

Note Receivable

A written promise for the payment of a specified amount of money at a set time to the holder or bearer of the note.

Accounts Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for, considered a current asset on the balance sheet.