June 17th Quizzes Flashcards
When owners of the corporation are also sureties of the corporation, if the corporation defaults…
The owners are immediately liable
The classification of a principal as disclosed, undisclosed or partially disclosed: what does it affect?
What does it not affect?
Affects contractual liability of agent toward 3rd parties
Does not affect authority given the agent
An agent representing an undisclosed principal has the same…
Implied authority as an agent representing a disclosed principal
An option is unenforceable when it…
Lacks consideration
Under the negotiable instruments article of the UCC, an instrument will be precluded from being negotiable if the instrument is…
Made subject to another agreement
The intent, or Scienter, element necessary to establish a cause of action for fraud will be met if the plaintiff can show that the…
Defendant made a misrepresentation with reckless disregard for the truth
The element necessary in establishing fraud is met by showing that the defendant had knowledge of…2
1 misrepresentation with intent to mislead or
2 showed reckless disregard for truth
Which of the following collectibles are an acceptable investment for an IRA?
Coins and bullion
Permanent differences between taxable income and pretax income affect…
Neither interperiod nor intraperiod income tax allocation
Generally a corporation does not recognize income when…
Issuing its own stock
When the FMV of stock is less than he debt it is used to pay off, the difference is considered…
Income from the forgiveness of debt
If there are originally 1,000 shares of stock and a non taxable dividend gives an additional 100 shares of stock, the original basis is $25,000 for the 1,000 shares. What is the basis per share?
$25,000/1100
Expenditures for research and experimentation that are exceptions to…
The uniform capitalization rules and are not required to be
capitalized
Dividends received deduction is 70% of the lesser of the…2
1 dividend received or
2 taxable income before the DRD
Which of the following organizations would generally qualify for exemption from federal income tax?
Title holding organization organized as a corporation
The ability to transfer licensing credential from one state to another is controlled by state boards and reciprocity is not guaranteed. Individuals seeking a particular state’s licensing credential must present…
Authorization for release of score information
According to the AICPA Articles of Professional Conduct, a CPA will hold themselves out as…
Individuals that will honor the public trust
If the auditor performed an additional review of the audited statements to ensure that the statements were accurate as of the effective date of registration statement this would…
Establish the defense of due diligence under 33’ act
For a client suing a CPA for negligence must prove…4
1 CPA owed legal duty
2 CPA breached duty
3 proximate cause
4 client suffered damage
Voidable preference allows a trustee to…
Set aside the security interest
Voidable preference allows a trustee to set aside the security interest which…
Secures payment of the obligation
Under the Federal Bankruptcy Code, can the debtor’s trustee in bankruptcy set aside the creditor’s security interest in the debtor’s inventory?
Why?
Yes
Debtor giving security interest to creditor created voidable preference
Under the Federal Fair Labor Standards Act, what is regulated in addition to minimum wage and overtime?
Number of hours in workweek
Under FOB purchaser’s loading dock, which of the parties bears the risk of loss during shipment? Why?
Seller
Risk of loss passes only when the goods reach the purchaser’s
Loading dock
