June 15th Quiz Flashcards
When a creditor refuses to accept the principal debtor’s tender of payment, the debtor will…
Remain liable as the accrual of additional interest stops
When the owner of a coat leaves it in the closet voluntarily, the owner of the premises where the cost is left is…
The caretaker of the coat until the owner retrieves it
Under the Securities Act of 1933, an accountant is liable to a purchaser of securities if the purchaser proves…2
1 a false financial statement/omission and
2 security was offered through registration statement
An offering made under the provisions of Regulation A of the Securities Act of 1933 requires that the issuer…
File an offering circular with the SEC
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?
$50,000
At what level must all tax cases start?
Trial court
The penalty for late filing of a partnership return is…
$195 per partner X # of months
A principal will not be liable to a third party for a tort committed by an agent unless the tort was…
Committed within the scope of the agency relationship
If a household employer files a schedule H, they do…
Not have to file Form 940 or Form 941
If an agent sells to a buyer at a larger discount than allowed, the principal (employer) may seek to recover from…
The agent only
Forming an agency relationship requires that…
Both principal and agent consent to the agency
What is not considered personal holding company income?
Capital gains
If a debtor files a petition for reorganization under Chapter 11 of the Federal Bankruptcy Code, a creditor’s committee if appointed will…
Consist of unsecured creditors
A distinction between a surety and a co surety is that only a co surety is entitled to…
Contribution
Contribution
Other co sureties contribute their share of liability to surety that had
To make full payment
Reimbursement is the right of sureties and cosureties to be paid by the principal debtor if they have to…
Make good on their guarantee to the creditor
Subrogation gives the sureties and co-sureties the right to any…
Assignments of property
Exoneration gives both sureties and cosureties the right to…
Compel principal debtor to make payment to creditor if it can
If a return omits an amount of income greater than 25%…
2) otherwise the IRS has…
IRS has 6 years to assess the deficiency
2) 3 years from time return is filed
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?
$1,000 x ($100/($1,900 + $100)) = $50
Which of the following negotiable instruments is subject to the UCC Commercial Paper Article?
Installment note payable on the first day of each month
$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…
$6,000 does not qualify for the home sale exclusion
In order for an organization to qualify for an exemption…
No part of the organizations net earnings will benefit private
Shareholder or individual
The right to avoid any statutory liens against the debtor’s property that were ineffective before the bankruptcy petition was filed is…
Not a power of a bankruptcy trustee
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?
Misstatements contained in financial statements certified by CPA
were material
If a married couple gets divorced and the wife sells the house that the husband lives in, the special use tacking provision allows…
The wife to use the full $250,000 exclusion on the gain
Chapter 11 bankruptcy was revised under the 2005 Bankruptcy Reform Act. Some of the more material changes and additions include…
Confirmation of Chapter 11 plan of reorganization does not
discharge an individual debtor
When a creditor refuses to accept the principal debtor’s tender of payment…
The surety is released
