Quiz 23-28 Flashcards Preview

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Flashcards in Quiz 23-28 Deck (28)
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1
Q

Lack of notification of the assignment of contract has…

A

No bearing on contract’s validity

2
Q

Generally an assignor will give…

A

notification of assignment of contract, but it is not required

3
Q

Assigning a contract does not relieve the assignor of…

A

Liability for fulfilling the contract

4
Q

When International CPA’s undertake audit work of a foreign subsidiary of a U.S. company and the work is relied upon by a U.S. CPA firm, the international CPA’s work is…

A

Subject to SOX since it is relied upon by the U.S. firm

5
Q

Circular 230 advises that the tax payer may request and receive…

A

Any/all records that are necessary to comply with taxpayer’s
Federal tax obligation

6
Q

Under Circular 230, the practitioner may…

A

Retain a copy of records returned to the client

7
Q

If an instrument is payable 6 months after the death of the maker it would…

A

Not be a negotiable instrument

8
Q

In order to be a negotiable instrument it must be payable…

A

Either on demand or at a definite time

9
Q

Someone’s death cannot…

A

Be determined at a definite time

10
Q

Promising to provide additional collateral if there is a decrease in value of existing collateral will…

A

Not affect the instrument’s negotiability

11
Q

An instrument is nonnegotiable if it is not payable at a definite time, example

A

I promise to pay to the order of within 5 days of the sale of my land

12
Q

The sale of land, specified on a nonnegotiable instrument may…

A

Take place tomorrow or Never take place

13
Q

Under the UCC, rules on Investment Contracts, by transferring a stock certificate to another party, the original owner…2

A

1 Warrants that the certificate is genuine

2 and has not been materially altered

14
Q

The rules of negotiability of investment securities follow…

A

The same rules of negotiation of commercial paper under UCC

15
Q

A sales agreement does not have to be in writing and signed by both parties to…

A

Sell stock

16
Q

If contracts had to be in writing the entire NY stock exchange would…

A

Shut down

17
Q

A stockholder normally has the right to sell his or her shares without getting permission from the issuer. The exception to this is when the…2

A

1 Stockholder is under a shareholder’s agreement and

2 has received restricted stock subject to terms of that agreement

18
Q

The mere endorsement of shares of stock…

A

Completes negotiation

19
Q

The mere endorsement of shares of stock completes negotiation so that the buyer does not have to…

A

Not have to wait until corporation issues new stock to buyer

20
Q

An individual becomes a bona ride purchaser of share upon…

A

Completion of endorsement

21
Q

Contract terms may be contained in multiple documents under…

A

The Statute of frauds

22
Q

The writing of documents under the Statute of frauds should contain…3

A

1 name of parties

2 subject matter

3 material terms and conditions

23
Q

All endorsers would be discharged from liability if the check was…

A

Certified subsequent to the endorsements

24
Q

Under the UCC, certification of a check is…

A

Acceptance

25
Q

Where a holder procures certification, which parties are discharged? 2

A

1 the drawer and

2 all prior endorsers

26
Q

Prosecution of criminal violations of federal securities laws is handled by the…

A

Justice Department

27
Q

3 duties of SEC

A

1 requiring disclosure of facts about listed securities

2 regulating securities brokers and

3 investigating securities fraud

28
Q

When a seller makes an assignment, they…

A

Impliedly warrant a lack of any fact impairing the value of the assignment

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