Whenever the Agent's Duties to the Principal Conflict with the Agent's

question 46

Multiple Choice

Whenever the agent's duties to the principal conflict with the agent's own interests:

• A)the agent automatically is regarded as having breached the duty of loyalty.
• B)the agent must disclose such facts to the principal,or be in violation of the duty of loyalty.
• C)there is no duty of disclosure if the agency is gratuitous.
• D)the agent must resign immediately.

Understand the concept of Paid-in Capital in Excess of Par Value and how it is recorded in financial transactions.

Calculate dividends on preferred and common stock under various scenarios including cumulative and non-cumulative, participating, and nonparticipating preferences.

Distinguish between common and preferred stock in terms of their features and the rights of their holders.

Prepare journal entries for complex stock issuance transactions including issuance for cash, non-cash transactions, and for services.

---

Definitions:

Conditional Expression

A programming construct that evaluates a condition and executes different code blocks based on whether the condition is true or false.

If Statement

A conditional programming statement that runs a specific block of code when a certain condition is met.

Else Clause

A part of conditional statements in programming that specifies what action to take when the condition in an if statement is not met.

Macro Action

A programmed instruction that triggers a sequence of operations or commands in software, automating repetitive tasks.