PE 1

Question 1

An accord and satisfaction

Answer 1

Where both parties agree to new terms that vary from the original contract such that fulfilling the terms of the new agreement will discharge the old agreement completely

Question 2

novation

Answer 2

Change in contract where the contract itself stays the same but the party changes

Question 3

Anticipatory repudiation

Answer 3

The Promisor indicates that he will not perform when the time comes

Question 4

Necessary in order to have a security interest attach

Answer 4

The debtor must have rights in the collateral.

The value must be given by the creditor.

Either the creditor must take possession of the collateral or the debtor must sign a security agreement that describes the collateral.

Question 5

Nondishargeable debts

Answer 5

WAFTED
Willful and malicious injury
Alimony
Fraud
Taxes
Educational loans
Debts that are undisclosed

Question 6

State board of accountancy

Answer 6

Is the only one with the right to grant and revoke a license

Question 7

For income to be taxable on a tax return, it must be

Answer 7

Both realized and recognized

Question 8

private foundation

Answer 8

typically receive funding from a single major source, such as a family or corporation, rather than funding from many sources.

The primary activity of most 501(c)(3) private foundations is making grants to other charitable organizations and individuals.

Question 9

How much in general expenditures can be deducted?

Answer 9

Expenditures up to $5,000 can be immediately deducted. Remaining expenses are amortized over 180 months.

Question 10

Organizations that test consumer products for public safety

Answer 10

Are classified as public charities

Question 11

With respect to a tax return preparer’s failure to disclose a conflict of interest,

Answer 11

the Internal Revenue Code does not set forth any penalty.

Question 12

Limits to American credit and life time study

Answer 12

Both credits cannot be claimed by the same student
American credit
100% * fist 2000
25% * Second 2000 nothing over this

Lifetime credit
20% * expense nothing over 10,000

Question 13

What doesn’t need a written contract

Answer 13

SWAP
Specially manufactured goods

Written confirmation

Admitted in court

Performed (enforceable to the extent of the performance of the party sought to be held liable)

Question 14

Writ of garnishment.

Answer 14

allows a creditor to collect money from a debtor’s wages