Which of the Following Terminates an Agency Relationship Through Operation

question 60

Multiple Choice

Which of the following terminates an agency relationship through operation of law?

• A) A specified result has been accomplished.
• B) There is mutual agreement between principal and agent to terminate the relationship.
• C) The principal dies.
• D) The principal revokes the agency.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder stipulating the terms under which the insurer agrees to compensate the insured for specific losses.

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Property Tax

A tax assessed on real estate by the local government and based on the property's value.

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.