When an Agency Is Terminated by Operation of Law, Notice

question 18

True/False

When an agency is terminated by operation of law, notice need not be given to third parties who have dealt with the agent. ​

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Definitions:

Working Capital

Current assets minus current liabilities, indicating the liquidity available to a business for day-to-day operations.

Closing Entry

An accounting transaction recorded at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.