AgencyIntermediateDelaware Exam

An agent's duty of accounting requires the agent to:

AFile annual tax returns on behalf of the client
BAccurately report and account for all client funds and property entrusted to the agentCorrect
CAudit the seller's financial statements before listing
DMaintain the client's bank accounts

Why Accurately report and account for all client funds and property entrusted to the agent Is Correct

Answer B: Accurately report and account for all client funds and property entrusted to the agent

The fiduciary duty of accounting requires an agent to properly account for all money and property received on behalf of the client, maintaining accurate records and providing an accounting when requested.

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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