Asked by Starr Holstick on Jul 06, 2024
Verified
Greta,an agent,receives money from clients of Wayne,her principal,on the fifteenth of each month.In the absence of an agreement,how frequently must Greta account to Wayne for the money she receives?
A) Typically during the financial year end
B) Immediately upon receiving the money
C) Within a year of receiving the money
D) Within a reasonable period of time after the money is received
Financial Year End
Financial year end is the completion of a one-year, or 12-month, accounting period; the date when companies must finalize their financial statements and report their financial performance.
Reasonable Period
A span of time that is considered fair and appropriate in a given context, especially in legal and contractual situations.
- Recognize the duties and frequency of accounting that an agent owes to their principal.
Verified Answer
KP
Karina PerezJul 08, 2024
Final Answer :
D
Explanation :
In the absence of an agreement, Greta would be required to account to Wayne within a reasonable period of time after receiving the money. This means that she should report to him periodically, but there is no set timeframe specified. It is important for agents to keep their principals updated and to provide regular reports or accountings to ensure transparency and accountability.
Learning Objectives
- Recognize the duties and frequency of accounting that an agent owes to their principal.