Which Is a Requirement for the Creation of an Agency

question 33

Multiple Choice

Which is a requirement for the creation of an agency relationship?

• A)A written agreement
• B)Principal with capacity
• C)Agent with capacity
• D)None of the above

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Definitions:

Accounting Information System

A system used to collect, store, manage, process, retrieve, and report financial data for the users.

Manual Accounting System

A system in which someone performs each of the steps in the accounting cycle by hand.

Special Journals

Accounting books designed for recording specific types of transactions, such as sales, purchases, cash receipts, and cash disbursements.

Special Journals

Accounting journals designed for recording a specific type of transaction consistently, such as sales or purchases, for efficient processing.