Question $19$

$2\mathrm{.}5$

Points

An accountant is least likely to be held liable for accounting fraud if he or she

fails to discover every impropriety in a client$$s books.

uncovers suspicious financial transactions but does not inform the client.

reports fictitious revenues in a client$$s financial statement.

conceals liabilities or debts, or artificially inflates assets, for a client.

Question $20$

$2\mathrm{.}5$

Points

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove

intent to deceive.

an injury.

justifiable reliance.

misstatement of a material fact.

Question $21$

$2\mathrm{.}5$

Points

Article $2$ of the UCC deals with sales of goods and intangible property.

True

False

Clear selection

Question $22$

$2\mathrm{.}5$

Points

If a writing indicating a sales contract contains only some of the terms that the parties agreed to$,$ a court may allow evidence of consistent additional terms.

True

False

Clear selection

Question $23$

$2\mathrm{.}5$

Points

The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open.

True

False

Clear selection

Question $24$

$2\mathrm{.}5$

Points

The UCC imposes on merchants

the business of buying or selling particular goods.

a relatively high degree of commercial expertise.

certain special business standards.

the predominant$-$factor test.

Question $25$

$2\mathrm{.}5$

Points

Bankruptcy relief is provided under state, not federal, law.

True

False

Clear selection

Question $26$

$2\mathrm{.}5$

Points

One of the Bankruptcy Code$$s main goals is to ensure preferential treatment of certain creditors who are competing for a debtor$$s assets.

True

False

Clear selection

Question $27$

$2\mathrm{.}5$

Points

All bankruptcy proceedings are conducted in federal bankruptcy courts.

True

False

Clear selection

Question $28$

$2\mathrm{.}5$

Points

All bankruptcy proceedings are held in

state bankruptcy courts.

local small$-$claims courts.

special cross$-$jurisdictional debtors courts.

federal bankruptcy courts.

Question $29$

$2\mathrm{.}5$

Points

Any person$$including individuals, but not partnerships or corporations$$may be a debtor under Chapter $7.$

True

False

Clear selection

Question $30$

$2\mathrm{.}5$

Points

With a binding agreement to extend credit, a secured party can obtain a security interest.

True

False

Clear selection

Question $31$

$2\mathrm{.}5$

Points

A debtor must have title to collateral to give a secured party a security interest in the property.

True

False

Clear selection

Question $32$

$2\mathrm{.}5$

Points

Auto Sales & Finance wants to get paid for its goods and services, so it will not sell goods or lend funds unless payment is guaranteed. This is the concept of

a fair debt collection practice.

fiduciary duty.

a secured transaction.

bad faith.

Question $33$

$2\mathrm{.}5$

Points

Any transaction in which the payment of a debt is guaranteed by personal property owned or held by the debtor is a secured transaction.

True

False

Clear selection

Question $34$

$2\mathrm{.}5$

Points

Business as we know it could not exist without secured transactions because otherwise sellers and lenders would be less likely to sell and lend on credit.

True

False

Clear selection

Question $35$

$2\mathrm{.}5$

Points

Secure Bank lends funds to Trucking Corporation to add a maintenance garage to Trucking$$s property. Payment of the loan is guaranteed by the building. The law covering this transaction is provided by

local building ordinances.

federal banking rules.

state shipping regulations.

the Uniform Commercial Code.

Question $36$

$2\mathrm{.}5$

Points

If a will does not provide how an estate will be distributed to grandchildren, under the per capita method of distribution, an heir takes the share that his or her deceased parent would have been entitled to inherit.

True

False

Clear selection

Question $37$

$2\mathrm{.}5$

Points

By insuring property, its owners protect themselves.

True

False

Clear selection

Question $38$

$2\mathrm{.}5$

Points

Under intestacy laws, if no heirs exist, then the state assumes ownership of the property of an estate.

True

False

Clear selection

Question $39$

$2\mathrm{.}5$

Points

Maria does not execute a will before she dies. The distribution of her estate is regulated by

the decisions of a trustee appointed by a probate court.

the comprehension of the natural objects of her bounty.

the terms of a different decedent$$s will disposing of a similar estate.

the state$$s intestacy statutes.

Question $40$

$2\mathrm{.}5$

Points

Anne obtains a liability insurance policy for her Bagels & Coffee Shop from Choice Insurance Company. In their dealings, the parties must

attempt to deny or reduce any claim.

have an insurable interest.

prevent the other from asserting certain defenses.

act in good faith.