Which of the Following Is True If a Principal and an Agent

question 23

Multiple Choice

Which of the following is true if a principal and an agent have no agreement regarding the amount for which the principal will compensate the agent?

• A)A court will assume that the agent agreed to work on a gratuitous basis.
• B)The agent will be allowed to set the price that a court will enforce unless it is unconscionable.
• C)The principal will be allowed to set the price that a court will enforce unless it is unconscionable.
• D)A court will appoint a magistrate to set the price.
• E)A court will calculate compensation according to the customary fee in the situation.

Grasp the principle of double-entry accounting and its impact on the financial statements.

Understand the principles of the double-entry accounting system.

Identify how transactions affect the accounting equation.

Recognize the rules for debit and credit in accounting.

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Definitions:

Personal Income Taxes

These taxes are levied on individuals' income by governments, including wages, dividends, and interest earnings.

Federal Personal Income Tax

A tax levied by the federal government of the United States on the income of individuals, including wages, salaries, and investment incomes.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, showing the percentage of tax applied to your next dollar of taxable income.

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.