AgencyIntermediateAlabama Exam

The duty of 'accounting' in a fiduciary relationship requires an agent to:

APrepare annual tax returns for the client, though specifics can vary by situation
BKeep accurate records of all money and property received on behalf of the clientCorrect
CAudit the client's personal finances
DReport all transactions to AREC

Why Keep accurate records of all money and property received on behalf of the client Is Correct

Answer B: Keep accurate records of all money and property received on behalf of the client

The duty of accounting requires the agent to keep accurate records of all money, documents, and property received or paid out on behalf of the principal.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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