I have just done this. Cancelling your Google Apps account is a deceptive 
process though, as it requires two steps to be successful.

First, cancel your Google Apps subscription (even if the account is free) 
on some settings page (billing). This logs you out of Google Apps, and 
makes it seems like this is equivalent to cancelling your account.
Second, log back into your Google Apps account. This prompts you to accept 
TOS for some reason. Now you can properly delete your account at the very 
bottom of some settings page (where you enter secondary email address and 
make other general settings).

I cannot comment on interruption of service, as this was on a new app I 
hadn't used yet.

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