Explain What Is Meant by an Agent's Fiduciary Duty

question 153

Essay

Explain what is meant by an agent's fiduciary duty. Give three examples of how that fiduciary duty can be breached.

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Definitions:

Unearned Revenues

Money received by an individual or company for a service or product that has yet to be provided or delivered.

Accounting Period

A specific duration of time for which financial activities are reported and analyzed, usually a year or a quarter.

Salaries Expense

Represents the total amount paid to employees for services rendered during a specific period.

Salaries Payable

Liabilities for salaries that have been earned by employees but not yet paid by the company.