Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

An agency relationship may be involuntarily terminated by which of the following?

Death of either the principal or the agent

Expiration of a specified time period

Mutual agreement between principal and agent

Completion of the agency's purpose

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Verified step by step guidance

Understand the concept of an agency relationship: An agency relationship is a legal arrangement where one party (the agent) acts on behalf of another party (the principal). This relationship can be terminated under certain conditions.

Review the conditions for termination of an agency relationship: These include involuntary termination (e.g., death of either party), expiration of a specified time period, mutual agreement, or completion of the agency's purpose.

Focus on involuntary termination: Involuntary termination occurs when circumstances beyond the control of the principal or agent end the relationship, such as the death of either party.

Analyze the other options: Expiration of a specified time period, mutual agreement, and completion of the agency's purpose are voluntary or natural terminations, not involuntary ones.

Conclude that the correct answer for involuntary termination is 'Death of either the principal or the agent,' as this is beyond the control of both parties and ends the agency relationship immediately.