June 15th Quiz Flashcards Preview

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Flashcards in June 15th Quiz Deck (28)
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1
Q

When a creditor refuses to accept the principal debtor’s tender of payment, the debtor will…

A

Remain liable as the accrual of additional interest stops

2
Q

When the owner of a coat leaves it in the closet voluntarily, the owner of the premises where the cost is left is…

A

The caretaker of the coat until the owner retrieves it

3
Q

Under the Securities Act of 1933, an accountant is liable to a purchaser of securities if the purchaser proves…2

A

1 a false financial statement/omission and

2 security was offered through registration statement

4
Q

An offering made under the provisions of Regulation A of the Securities Act of 1933 requires that the issuer…

A

File an offering circular with the SEC

5
Q

If a custom order is made for $50,000 and it costs $40,000 to make the custom order, and the buyer refuses to accept the order, how much can the seller recover?

A

$50,000

6
Q

At what level must all tax cases start?

A

Trial court

7
Q

The penalty for late filing of a partnership return is…

A

$195 per partner X # of months

8
Q

A principal will not be liable to a third party for a tort committed by an agent unless the tort was…

A

Committed within the scope of the agency relationship

9
Q

If a household employer files a schedule H, they do…

A

Not have to file Form 940 or Form 941

10
Q

If an agent sells to a buyer at a larger discount than allowed, the principal (employer) may seek to recover from…

A

The agent only

11
Q

Forming an agency relationship requires that…

A

Both principal and agent consent to the agency

12
Q

What is not considered personal holding company income?

A

Capital gains

13
Q

If a debtor files a petition for reorganization under Chapter 11 of the Federal Bankruptcy Code, a creditor’s committee if appointed will…

A

Consist of unsecured creditors

14
Q

A distinction between a surety and a co surety is that only a co surety is entitled to…

A

Contribution

15
Q

Contribution

A

Other co sureties contribute their share of liability to surety that had
To make full payment

16
Q

Reimbursement is the right of sureties and cosureties to be paid by the principal debtor if they have to…

A

Make good on their guarantee to the creditor

17
Q

Subrogation gives the sureties and co-sureties the right to any…

A

Assignments of property

18
Q

Exoneration gives both sureties and cosureties the right to…

A

Compel principal debtor to make payment to creditor if it can

19
Q

If a return omits an amount of income greater than 25%…

2) otherwise the IRS has…

A

IRS has 6 years to assess the deficiency

2) 3 years from time return is filed

20
Q

If common stock has an original basis of $1,000 and FMV of $1,900 and nontaxable preferred shares are issued for a FMV of $100? What is the basis of the preferred shares?

A

$1,000 x ($100/($1,900 + $100)) = $50

21
Q

Which of the following negotiable instruments is subject to the UCC Commercial Paper Article?

A

Installment note payable on the first day of each month

22
Q

$6,000 of a profit on a Residence used for business purposes is attributable to depreciation for the period after May 6, 1997. Home sale exclusion is $120,000. Of this gain…

A

$6,000 does not qualify for the home sale exclusion

23
Q

In order for an organization to qualify for an exemption…

A

No part of the organizations net earnings will benefit private
Shareholder or individual

24
Q

The right to avoid any statutory liens against the debtor’s property that were ineffective before the bankruptcy petition was filed is…

A

Not a power of a bankruptcy trustee

25
Q

Under the liability provisions of Section 11 of the Securities Act of 1933, which of the following must a plaintiff prove to hold a CPA liable?

A

Misstatements contained in financial statements certified by CPA
were material

26
Q

If a married couple gets divorced and the wife sells the house that the husband lives in, the special use tacking provision allows…

A

The wife to use the full $250,000 exclusion on the gain

27
Q

Chapter 11 bankruptcy was revised under the 2005 Bankruptcy Reform Act. Some of the more material changes and additions include…

A

Confirmation of Chapter 11 plan of reorganization does not

discharge an individual debtor

28
Q

When a creditor refuses to accept the principal debtor’s tender of payment…

A

The surety is released

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