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CPA ACCOUNT 2023

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CPA ACCOUNT 2023 EXERCISES IN AGENCY INCLUDING PAST CPA EXAMINATION QUESTIONS TRUE OR FALSE 1. In agency, the “authority” given to an agent is the mandate, while “power” refers to ... the extent of the mandate. (TRUE) 2. The agent, if authorized to borrow money, he can be the lender, but generally he cannot be the borrower if he is authorized to lend. (TRUE) 3. The agent is called upon to sacrifice his interest and give it to the principal if there is a conflict of interest. (TRUE) 4. The agent is responsible for the acts of his sub-agent, if he (agent) was not given the power to appoint one and he is not also prohibited from appointing one. (TRUE) 5. A commission agent is an agent having the option of acting in his own name or in that of his principal. (TRUE) 6. If the agency has been entrusted for the purpose of contracting with specified persons, its revocation shall not prejudice the latter if they were not given notice thereof. (TRUE) 7. An agency cannot be revoked if a bilateral contract depends upon it, or if it is the means of fulfilling an obligation already contracted, or if a partner is appointed manager of a partnership in the contract of partnership and his removal from the management is unjustifiable. (TRUE) 8. In agency, the agent represents an incapacitated person.(FALSE) 9. When a sale of a piece of land is made through an agent, his authority must be in writing; otherwise, the sale is unenforceable.(FALSE 10. If the agent dies, the heirs must notify the principal immediately, and must continue the objective of the agency until it is accomplished or until the principal appoints a new agent.(FALSE) 11. If an agent acts in his own name, the principal has no right of action against the persons with whom the agent has contracted; neither have such persons against the princip [Show More]

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