The IRS Has Developed a Three-Prong Test to Determine an Agent's

question 57

Multiple Choice

The IRS has developed a three-prong test to determine an agent's status.Which of the following is not a prong in this test?

• A) Whether the working relationship is written or oral.
• B) Behavioral aspects of the agency.
• C) The type of working relationship between the principal and the agent.
• D) The financial arrangements between the principal and the agent.

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Definitions:

Marketable Securities

Financial instruments that can be easily bought or sold on public exchanges or markets with high liquidity and short maturity periods.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Bottom Line

In finance, it refers to the net income or profit of a business after all expenses have been deducted from revenues. In general use, it means the final outcome or conclusion.

Net Income

The total profit of a company after all expenses and taxes have been deducted from its total revenue.