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AUD
QUESTIONS:
197. If the
seller has voidable title, s/he
may transfer a valid title to a
good faith purchaser who takes for
value and without notice. A
voidable title can be created by a
person receiving goods if: 1) the
delivery was procured through
fraud, 2) the delivery was in
exchange for a check that was
later dishonored, 3) the delivery
was to be for cash and no cash was
paid, and 4)
__________________________________.
a. All attempts at delivery were
dishonored
b. The seller was
deceived as to purchaser’s
identity
c. The arrangements
for payment were ill-advised
d.
An intention to deceive on the
part of the title giver
e. The
title was not signed in front of a
third party
Answer: b.
Explanation: The seller was
deceived as to purchaser’s
identity
192. An agent’s
actual authority is that power
consented to by the principal that
affects the principal’s legal
restrictions. If losses to the
principal result from the agent
portraying more authority that is
present, the agent
___________________________
__________________________.
a.
Engages an attorney to address the
court
b. Is liable for the
amount exceeding actual authority
c. Must return the losses to the
client
d. Fails to complete the
transaction for the client
e.
Is limited in his or her attempts
for redress
b. Is liable
for the amount exceeding actual
authority
38. Auditors
should request that an audit
client send a letter of inquiry to
those solicitors who have been
consulted concerning litigation or
claims (AUS 508, ISA 501). The
primary reason for this request is
to provide
A. corroborative
evidential matter
B.
information concerning the
progress of cases to date
C. an
estimate of the dollar amount of
the probable loss
D. an expert
opinion as to whether a loss is
possible, probable or remote.
Answer: A
Explanation: The
primary reason for this request is
to provide corroborative
evidential matter.
40. Six
months after issuing an
unqualified opinion on a set of
financial statements, the audit
partner discovered that the
engagement personnel on the audit
failed to confirm several of the
client's material accounts
receivable balances. The audit
partner should first
A. inquire
whether there are persons
currently relying, or likely to
rely, on the unqualified opinion.
B. assess the importance of the
omitted procedures to the
auditor's ability to support the
previously expressed opinion.
C. perform alternative procedures
to provide a satisfactory basis
for the unqualified opinion.
D.
request permission of the client
to undertake the confirmation of
accounts receivable.
Answer: B
Explanation: The
audit partner should first assess
the importance of the omitted
procedures to the auditor's
ability to support the previously
expressed opinion.
41.
Subsequent to the issuance of the
auditor's report, the auditor
became aware of facts existing at
the report date that would have
affected the report had the
auditor then been aware of them.
After determining that the
information is reliable, the
auditor should next
A. notify
the board of directors that the
auditor's report must no longer be
associated with the financial
statements.
B. determine
whether there are persons relying,
or likely to rely, on the
financial statements who would
attach importance to the
information.
C. request that
management discloses the effects
of the newly discovered
information by adding a note to
subsequently issued financial
statements.
D. issue revised
pro-forma financial statements,
taking into consideration the
newly discovered information.
Answer: C
Explanation: The
auditor should request that
management discloses the effects
of the newly discovered
information by adding a note to
subsequently issued financial
statements.
24. What type
of questionnaire’s objective is to
determine if the types of goods
and services to be obtained, the
manner in which they are obtained,
the vendors from which they are
obtained, the quantities to be
obtained, and the prices and terms
initiated and executed are in
accordance with management
authorizations
A. Revenue
and Receivables
B. Accounting
system
C. Purchases and account
payable
D. Cash receipts
Answer: C
Explanation: The
purchases and accounts payable
questionnaire’s objective is to
determine if the types of goods
and services to be obtained, the
manner in which they are obtained,
the vendors from which they are
obtained, the quantities to be
obtained, and the prices and terms
initiated and executed are in
accordance with management
authorizations
54. In the
planning of an audit, it was
decided that cash would not be
audited because it comprised only
1 per cent of total assets. How
would you respond to this
decision?
A. Whether or not
this was acceptable would depend
on the company and the type of
industry.
B. Cash is always
going to be material, no matter
what amount it is.
C. An amount
of 1 per cent of total assets is
likely to be immaterial.
D. It
is probable that this amount would
still be considered material, due
to the nature of cash.
Answer: D
Explanation: It is
probable that this amount would
still be considered material, due
to the nature of cash.
1.
After the auditing process, the
auditor is required to express an
opinion regarding the entity’s
financial statements, financial
position, conformity with GAAP,
and cash flows. In which of the
following opinions can SCOPE
RESTRICTIONS (not material by
circumstance) be a reason for
writing an explanatory paragraph?
A. unqualified
B. qualified
C. disclaimer
D. adverse
E.
disqualified
Answer: B
Explanation: B is a reason that
requires an explanatory paragraph
to be written in a qualified
opinion.
5. An independent
auditor plans, conducts, and
reports the results of an audit in
accordance with generally accepted
auditing standards (GAAS). Which
of the following is required under
the Standards of Field Work
section of the GAAS?
A.
Auditing must be performed by a
person with adequate technical
training.
B. Financial
Statements are consistent with
GAAP.
C. Auditor must have
sufficient understanding of
internal control.
D. Due
professional care is crucial in
planning and performing the audit.
E. Auditor needs independence in
mental attitude.
Answer: C
Explanation: C is
required under the Standards of
Field Work section of the GAAS.
23. The auditor must either
express an opinion regarding the
financial statements, taken as a
whole, or state that an opinion
cannot be expressed, in the
auditor's report. When the auditor
cannot express an overall opinion,
he or she should:
A. state
the reasons why he cannot express
an overall opinion in the
auditor's report
B. state the
reasons why he cannot express an
overall opinion in a separate memo
to the company
C. state the
reasons why he cannot express an
overall opinion in a separate memo
to the government
D. state the
reasons why he cannot express an
overall opinion in a separate memo
to the auditing board
E. not do
anything at all and just leave the
opinion page blank to avoid
misconduct
Answer: A
Explanation: State the reasons why
he cannot express an overall
opinion in the auditor's report.
BEC
QUESTIONS
53.
Monopolistic Competition involves
a large number of sellers,
differentiated products,
relatively easy entry into and
exit from the market for firms,
some price control and
_____________________________________.
a. considerable non-price
competition
b. no non-price
competition
c. marginal
marketing competition
d.
considerable marketing competition
ANSWER: a.
Explanation:
Monopolistic Competition involves
a large number of sellers,
differentiated products,
relatively easy entry into and
exit from the market for firms,
some price control and
considerable non-price
competition.
34. As the
____________________ approaches 1,
we are given a higher level of
assurance the independent variable
accounts for most of the
variability in the dependent
variable.
a. coefficient of
correlation
b. variable
correlation coefficient
c.
coefficient of linearity
d.
coefficient of determination
ANSWER: d.
Explanation: As the
coefficient of determination
approaches 1, we are given a
higher level of assurance the
independent variable accounts for
most of the variability in the
dependent variable.
90.
Top-down planning is typical, with
____________________ developing
five-year plans with input from
consultants and the planning
group, but with minimal direct
input from lower-level management.
a. mid –level management
b. top
management
c. boards of
directors
d. strategic planning
group
ANSWER: b.
Explanation: Top-down planning is
typical, with top management
developing five-year plans with
input from consultants and the
planning group, but with minimal
direct input from lower-level
management.
65. Amendments
to corporate articles requiring
approval by an absolute majority
of shareholders include merger,
_____________, dissolution or sale
of a substantial part of corporate
assets.
a. consolidation
b.
expansion
c. workman’s
compensation
d. unemployment
insurance
ANSWER: a.
Explanation: Amendments to
corporate articles requiring
approval by an absolute majority
of shareholders include merger,
consolidation, dissolution or sale
of a substantial part of corporate
assets.
90) Expansion of
the money supply that results from
a bank's ability to lend
significantly in excess of it's
reserves causing
an phenomena
where that income is spent several
different times. This is known as
the...?
a) multiplied increase
rule
b) tax multiplier
coefficient
c) open market
operations
d) multiplier effect
e) increased consumption effect
ANS – D
EXP -Multiplier
Effect-Any increase in autonomous
investment, consumption, or
government spending results in a
multiplied increase in national
income. The same income is spent
several times. The impact of this
effect is determined by the
marginal propensity to save.
29) While the investment team
of The KAT Corporation agrees that
the return on investment measures
the relationship of
profit to
invested capital for a unit of
accountability, what they don't
agree on is how this can be
achieved. Which of
the
following are not factors of
operating income / average
invested capital
a) return is
increased when operating income
increases
b) the firm uses its
capital to generate profit
c)
returns increase when average
invested capital decreases
d)
operating income increases when
costs decrease
e) the sum of
dividends paid plus capital gains
ANS – E
EXP-The return on
investment measures the
relationship of profit to invested
capital for a unit of
accountability. The return on
investment is increased when
operating income increases or
average invested capital
decreases. Return on investment
decreases when operating income
decreases or average capital
increases. Operating income
increases when costs decrease or
decrease when costs increase. It =
Operating income / Avg Invested
capital
30) To define their
net operating profit after tax the
shareholders decide to use the
equation for economic value added
which of the following is not
a factor to be considered in the
equation?
a) operating profit
times one minus tax rate
b)
opportunity cost interest rate for
community capital
c) rate of
return in excess
d) employed
equity capital
e) employed debt
ANS – C
EXP -Economic Value
Added-Net Operating profit after
tax less the opportunity cost of
capital. It = Operating Profit X
(1-tax rate) – (opportunity cost
interest rate for equity capital X
employed equity capital) –
(opportunity cost interest rate
for debt X employed debt)
31) If Zach is computing the
equation, operating income minus
(inputed interest rate times
average investment capital he is
basically trying to figure out
residual income. Which of the
following relates to residual
income?
a) a unit earns a rate
of return in excess of the imputed
interest charge
b) a
combination of term loans, bonds,
and preferred stock
c)
dividends paid plus capital gains
d) PV of cash flows / initial
investment
e) the cost of
initial investment
ANS – A
EXP -Residual Income-As long as
the accounting unit earns a rate
of return in excess of the imputed
interest charge for invested
capital, the unit should expand.
It = Operating Income – (imputed
interest rate X avg invested
capital)
FAR
QUESTIONS:
365. Debt to
Equity=Total Liabilities/Owner’s
Equity. Measures the relative
amounts of resources provided by
creditors and owners. Long-Term
Solvency is ability to meet
interest payments and preferred
dividends. Which is also related
with this?
A. Other
variable costs.
B. Other
initial costs.
C. Other fixed
costs.
D. Other maintenance
costs.
ANS: C
EXP: Long-Term
Solvency-Ability to meet interest
payments, preferred dividends, and
other fixed costs. Debt to
Equity=Total Liabilities/Owner’s
Equity. Measures the relative
amounts of resources provided by
creditors and owners.
366.
Times Interest Earned=Income
before taxes and
interest/Interest. Ability to meet
interest payments. Adequacy of
current earnings for payment of
preferred dividends is related to
Times preferred dividends earned.
What is Times preferred dividends
earned?
A. CL/Annual
Preferred Dividend Requirement.
B. CA/Annual Preferred Dividend
Requirement.
C. NI/Annual
Preferred Dividend Requirement.
D. NA/Annual Preferred Dividend
Requirement.
ANS: C
EXP:
Times Interest Earned=Income
before taxes and
interest/Interest. Ability to meet
interest payments. Times preferred
dividends earned=NI/Annual
Preferred Dividend Requirement.
Adequacy of current earnings for
payment of preferred dividends.
367. Operational
Efficiency=Ability of the business
entity to generate income as well
as efficiency and effectiveness in
using the assets employed.
Indications of the efficiency of
credit policies and collection
procedures, and of the quality of
receivables are related to
Receivables Turnover. Which one is
Receivables Turnover?
A. Net Credit Sales/Avg Net
Receivables.
B. Net Credit
Sales/Avg Net Payables.
C.
NI/Annual Preferred Dividend
Requirement.
D. NA/Annual
Preferred Dividend Requirement.
ANS: A
EXP: Operational
Efficiency=Ability of the business
entity to generate income as well
as efficiency and effectiveness in
using the assets employed.
Receivables Turnover=Net Credit
Sales/Avg Net Receivables.
Indication of the efficiency of
credit policies and collection
procedures, and of the quality of
receivables.
368. BV Per
Common Share=Common Stockholders’
Equity/# of Common Shares
Outstanding. Preferred stock must
be subtracted out. Cumulative
preferred stock dividends in
arrears must also be subtracted.
Which affects the denominator as
the # of common shares outstanding
is reduced?
A. Secondary
stock.
B. Primary stock.
C.
Tertiary stock.
D. Treasury
stock.
ANS: D
EXP: BV
Per Common Share=Common
Stockholders’ Equity/# of Common
Shares Outstanding. Preferred
stock must be subtracted out.
Cumulative preferred stock
dividends in arrears must also be
subtracted. Treasury stock affects
the denominator as the # of common
shares outstanding is reduced.
369. BV Per Preferred
Share=Preferred Stockholders’
Equity/# of Preferred Shares
Outstanding. Preferred
Stockholders’ Equity is made up of
1) Preferred stock at the greater
of its liquidation, par or stated
value and the second point is-
A. Secondary stock
dividends in arrears.
B.
Primary stock dividends in
arrears.
C. Cumulative
preferred stock dividends in
arrears.
D. Preferred stock
dividends in arrears.
ANS:
C
EXP: BV Per Preferred
Share=Preferred Stockholders’
Equity/# of Preferred Shares
Outstanding. Preferred
Stockholders’ Equity is made up of
1) Preferred stock at the greater
of its liquidation, par or stated
value and 2) cumulative preferred
stock dividends in arrears.
400. There are so many foreign
currency designation hedges and
their designation can be given as
FV Hedge, Cash Flow Hedge. Which
one of the following also includes
this?
A. Hedge on Net
Investment in a Foreign Operation
B. Hedge on net profit in a
foreign operation
C. Hedge on
net loss in a foreign investment
D. Hedge on net glow in a foreign
investment
ANS: A
EXP:
Foreign Currency Hedges -Hedge
Designation-FV Hedge, Cash Flow
Hedge, Hedge on Net Investment in
a Foreign Operation.
401.
Business Combinations is usually
necessary for a fair presentation
when one of the companies in the
group has a controlling interest
in the other companies. All
majority-owned subsidiaries s/b
consolidated, unless specifically
exempted. What is true about
controlling interest of one of the
companies in the group to the
other companies?
A. Directly
has a controlling interest
B.
Indirectly has a controlling
interest.
C. Directly or
indirectly has a controlling
interest.
D. Has no controlling
interest.
ANS: C
EXP:
Business Combinations
Overview-Usually necessary for a
fair presentation when one of the
companies in the group directly or
indirectly has a controlling
interest in the other companies.
All majority-owned subsidiaries
s/b consolidated, unless
specifically exempted.
402.
Business Combinations is usually
necessary for a fair presentation
when one of the companies in the
group directly or indirectly has a
controlling interest in the other
companies. All majority-owned
subsidiaries s/b consolidated,
unless specifically exempted. When
business combinations do not
occurs?
A. when an entity
acquires net assets or equity
interests of one or more other
businesses
B. Obtains control
over that or other entities
C.
When an entity acquires net assets
or equity interests of one or more
other businesses and obtains
control over that or other
entities
D. When an entity does
not acquire net assets or equity
interests of one or more other
businesses and does not obtain
control over that or other
entities.
ANS: D
EXP: Occurs
when an entity acquires net assets
or equity interests of one or more
other businesses and obtains
control over that or other
entities.
403. Business
Combinations is usually necessary
for a fair presentation when one
of the companies in the group
directly or indirectly has a
controlling interest in the other
companies. All majority-owned
subsidiaries s/b consolidated,
unless specifically exempted. When
a majority owned subsidiary should
not be consolidated?
A. If
control doesn’t rest with the
majority owner.
B. If control
rest with the majority owner.
C. If control rest or doesn’t rest
with the majority owner.
D.
Majority owner is not a fact here.
ANS: A
EXP: A majority owned
subsidiary should not be
consolidated if control doesn’t
rest with the majority owner.
Consolidation of majority-owned
subsidiaries is required even if
they have non homogeneous
operations, a large minority
interest, or a foreign location.
404. Business Combinations
is usually necessary for a fair
presentation when one of the
companies in the group directly or
indirectly has a controlling
interest in the other companies. A
majority owned subsidiary should
not be consolidated if control
doesn’t rest with the majority
owner. When consolidation of
majority-owned subsidiaries is not
required?
A. If they have non
homogeneous operations.
B. A
large minority interest.
C.
Foreign location.
D. No
interest.
ANS: D
EXP: A
majority owned subsidiary should
not be consolidated if control
doesn’t rest with the majority
owner. Consolidation of
majority-owned subsidiaries is
required even if they have non
homogeneous operations, a large
minority interest, or a foreign
location.
405. Business
Combinations is usually necessary
for a fair presentation when one
of the companies in the group
directly or indirectly has a
controlling interest in the other
companies. All majority-owned
subsidiaries s/b consolidated,
unless specifically exempted. Is
it true that Goodwill is similar
to any excess of the purchase
price over the FV of the net
identifiable assets is recorded as
goodwill?
A. Yes.
B. No.
C. Goodwill means kindly feeling.
D. Intension that good will
result.
ANS: A
EXP:
Goodwill-Any excess of the
purchase price over the FV of the
net identifiable assets is
recorded as goodwill.
406. Equity Interests is an
acquiring corporation may acquire
ownership by obtaining a majority
of the common stock. The separate
legal entity is still preserved.
Who may negotiate with management
to obtain assets of the company?
A. The acquiring corporation.
B. Manager.
C. Investor.
D.
Loan provider.
ANS: A
EXP:
Assets: The acquiring corporation
may negotiate with management to
obtain assets of the company. Upon
consumption, the acquired company
ceases to exist as a separate
economic, legal, and accounting
entity.
407. The
acquiring corporation may
negotiate with management to
obtain assets of the company. Upon
consumption, the acquired company
ceases to exist as what not from
the following?
A. A separate
economic entity.
B. Legal
entity.
C. Accounting entity.
D. Pleasure entity.
ANS: D
EXP: Assets: The acquiring
corporation may negotiate with
management to obtain assets of the
company. Upon consumption, the
acquired company ceases to exist
as a separate economic, legal, and
accounting entity.
408.
The acquiring corporation may
negotiate with management to
obtain assets of the company. Upon
consumption, the acquired company
ceases to exist as a separate
economic, legal, and accounting
entity. How an acquiring
corporation may acquire ownership?
A. By obtaining a majority of the
common stock.
B. By obtaining a
few of the common stock.
C.
Buying assets.
D. Selling
assets.
ANS: A
EXP: Equity
Interests: An acquiring
corporation may acquire ownership
by obtaining a majority of the
common stock. The separate legal
entity is still preserved. The
subsidiary continues to maintain
its own separate set of books.
This creates the need for
consolidated statements.
REG
QUESTIONS:
65.
Automatic Stay is a fundamental
debtor protection that prevents
all collection efforts, all
harassment, and all foreclosure or
other legal proceedings. An
automatic stay does not vitiate
the rights of creditors. The stay
of any other act continues until
the earliest of the time the case
is closed, ______________.
a. the parties have met such a
requirement
b. has been filed
against the debtor or the
partnership
c. a Statute of
Frauds defense is raised by the
defendant
d. the case is
dismissed, or a discharge is
approved or denied
d. the
case is dismissed, or a discharge
is approved or denied
In
bankruptcy law, an automatic stay
is an automatic injunction which
halts actions by creditors, with
certain exceptions, to collect
debts from a debtor who has
declared bankruptcy.
66.
Fair Credit Reporting Act requires
credit reporting agencies to
follow reasonable procedures to
guarantee maximum possible
accuracy in reporting consumer
credit histories and bans the
agencies from including inaccurate
or outdated information in
consumer reports. This act
provides __________________.
a. the plaintiff's expenditure
in conducting a fruitless search
for the vessel could be awarded
b. has been filed against the
debtor or the partnership
c. to
challenge inaccurate or incomplete
information for individuals
d.
the parties expressly state that
they do not want to be bound
c. to challenge inaccurate or
incomplete information for
individuals
The Fair Credit
Reporting Act (FCRA) is an
American federal law (codified at
15 U.S.C. § 1681 et seq.) that
regulates the collection,
dissemination, and use of consumer
information, including consumer
credit information.
67.
________________ when a debtor
defaults on its payments to an
unsecured creditor. They may: 1)
take a writ of attachment
(property will be seized to secure
payment), 2) take an order of
garnishment (gain access to assets
detained by third party to assure
unpaid debt), or 3) take judgment
and implement it by execution
(nonexempt property is charged
upon or seized and sold to satisfy
the judgment)
a. the
creditor may introduce legal
action
b. the parties have met
such a requirement
c. debtor
making monthly payments for a
maximum of five years
d.
several months or even years pass
between the financial problems and
the start of bankruptcy
proceedings
a. the creditor
may introduce legal action
68. Assignment for the Benefit of
Creditors (ABC) is the transfer of
all the debtor’s nonexempt assets
to another person in trust which
is the assignee and
______________.
a.
liquidates the assets and
distributes the proceeds to the
creditors
b. a Statute of
Frauds defense is raised by the
defendant
c. the circumstances
imply that parties have reached an
agreement
d. it is presented to
the judge
a. settles the assets
and allocates the earnings to the
creditors
69. Equal Credit
Opportunity Act of 1974 bans all
businesses regularly enlarging
credit from discriminating against
any applicant on the basis of
_______________. Remedies include
actual and punitive damages plus
attorneys’ fees.
a. the
court will formally grant the
debtor a discharge of the debts
provided for in the plan
b. the
carrier under a duty to issue the
bill of lading
c. sex, marital
status, race, color, religion,
natural origin, or age
d. price
of a promise and is a
controversial requirement for
contracts under common law
c. sex, marital status, race,
color, religion, natural origin,
or age
70. A composition
agreement is _______________ an
immediate or early payment of a
lesser sum in complete
satisfaction of the debt because
of them.
a. circumstances
indicate that the promisee intends
to give the beneficiary the
benefit of the promised
performance
b. this
jurisdiction could be delegated to
the bankruptcy court
c.
important information about their
assets and liabilities
d. an
contract between a debtor and its
creditors in which the
participating creditors consent to
acknowledge
d. a contract
between a debtor and its
creditors; in which the
participating creditors consent to
acknowledge
71. An
extension is a contract between a
debtor and its creditors in which
___________________, but extends
it over a period beyond the due
date. Equity Receivership is a
court-supervised liquidation of
restructuring that doesn’t
differentiate the debtor from
debts.
a. the parties have
met such a requirement
b. Cost,
Insurance and Freight
c. civil
law systems typically apply
certain over-arching principles to
disputes arising out of contract
d. the participating creditors get
complete payment of their claims
d. the participating creditors
get complete payment of their
claims
72. For an
underlying obligation securing
payment or other performance a
lien is an interest in property.
Liens which are created with the
debtor’s consent are consensual
liens. When _________________ or a
right against a surety in return
for a loan or credit sale these
liens are created.
a. it is
presented to the judge
b. a
Statute of Frauds defense is
raised by the defendant
c. the
debtor agrees in giving the
creditor a right to some personnel
or the real estate
d. the
circumstances imply that parties
have reached an agreement
c. the debtor agrees in giving the
creditor a right to some personnel
or the real estate
73. An
agreement of the composition is an
agreement between a debtor and its
creditors in which the creditors
that participate agree in
accepting an immediate one or
___________.
a. Value must
be given by the secured party and
the debtor must have the rights in
the collateral
b. the
plaintiff's expenditure in
conducting a fruitless search for
the vessel could be awarded
c.
the parties expressly state that
they do not want to be bound
d.
early payment of a lesser sum in
full satisfaction of the debt due
to them
d. early payment of
a lesser sum in full satisfaction
of the debt due to them
74.
The Contract of Suretyship is an
agreement by which ____________ on
the defect of the debtor. The
Contract of Suretyship should have
tribute and valid acceptance.
a. a person assures the debt
of another assuring performance
b. has been filed against the
debtor or the partnership
c.
civil law systems typically apply
certain over-arching principles to
disputes arising out of contract
d. accepted by the bank on which
it’s drawn
a. a person
assures the debt of another
assuring performance
A surety
contract is an agreement in which
one party, called the surety,
accepts the responsibility for
someone else's contractual
obligations
9. If an
individual must "take" the "means
test", ______________ and secured
debt payments in a very
complicated computation that may
or may not exactly reflect the
actual monthly budget of that
individual.
a. their
average monthly income over this
180 day period is decreased to a
series of allowances for living
wage expenses
b. the informal
procedure of small claims court,
and you will have to learn
c.
the injured party cannot prove
that the person believed to have
caused the injury acted with
negligence, at the very least
d. an agreement by one party to
buy her/his “requirements” of a
certain product from a certain
supplier
a. their average
monthly income over this 180 day
period is decreased to a series of
allowances for living wage
expenses
The term means test
refers to an analytical process
accepted to decide whether or not
an individual or family is
eligible to meet the criteria for
help from the government.
10. Bankruptcy statistics are also
a straggling indicator. There is a
time delay between financial
complexities and liquidation. In
most cases, _______________.
Legal, tax, and cultural issues
may further distort bankruptcy
figures, particularly when
comparing on an international
basis.
a. a person seeking
to sue another for liability under
a warranty had to be in privity
b. several months or even years go
by between the financial problems
and the start of insolvency
procedures
c. the seller put
and hold conforming goods at the
buyer’s disposition
d. the
contract is avoided if the loss is
total, or if partial loss the
buyer can either avoid the
contract
b. several months
or even years go by between the
financial problems and the start
of insolvency procedures
Bankruptcy is a legally declared
inability or impairment of ability
of an individual or association to
pay its creditors. Creditors may
file a bankruptcy appeal against a
debtor ("involuntary bankruptcy")
in an attempt to recover a part of
what they are allocated or
initiate a restructuring
11. Creditor's rights is a legal
term used to illustrate the set of
procedural provisions planned to
________________ persons who are
owed money - to collect the money
that they are payable.
a.
protect the ability of creditors
b. promise to do either, given by
one party to a contract in
exchange for another party’s act
c. the buyer’s duty to accept and
pay for the goods
d. the MP at
the time and place for tender and
the contract price, plus
incidental damages
a.
protect the ability of creditors
A creditor is a party (e.g.
person, organization, company, or
government) that has an argument
to the services of a second party.
It is a person or organization to
whom money is payable.
12.
Creditor's rights not only deal
with the rights of creditors
against the debtor, but also with
________________.
a. a
condition precedent to promisor’s
performance, failure of
consideration, incapacity, and
failure
b. the informal
procedure of small claims court,
and you will have to learn
c.
the severity of the disciplinary
action
d. also with the rights
of creditors against one another
d. the rights of creditors
against one another
A creditor
is a party (e.g. person,
organization, company, or
government) that has a claim to
the services of a second party. It
is a person or institution to whom
money is owed |
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