Regulation 5 PassMaster Questions - Becker CPA Review,...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Becker CPA Review, PassMaster Questions Lecture: Regulation 5 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. CPA PassMaster Questions–Regulation 5 Export Date: 10/30/08
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Becker CPA Review, PassMaster Questions Lecture: Regulation 5 2 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Contracts CPA-01072 Type1 M/C A-D Corr Ans: C PM#1 R 5-01 1. CPA-01072 Lw R02 #12 Page 16 Green was adjudicated incompetent by a court having proper jurisdiction. Which of the following statements is correct regarding contracts subsequently entered into by Green? a. All contracts are voidable. b. All contracts are valid. c. All contracts are void. d. All contracts are enforceable. CPA-01072 Explanation Choice "c" is correct. Contracts entered into by one who has been adjudicated mentally incompetent are void rather than voidable. Thus "a" is incorrect. Note that choices "b" (all contracts are valid) and "d" (all contracts are enforceable) are the same answer. Since both cannot be correct, both must be wrong. CPA-01076 Type1 M/C A-D Corr Ans: A PM#2 R 5-01 2. CPA-01076 Lw R02 #13 Page 21 Which of the following actions if taken by one party to a contract generally will discharge the performance required of the other party to the contract? a. Material breach of the contract. b. Delay in performance. c. Tender. d. Assignment of rights. CPA-01076 Explanation Choice "a" is correct. A material breach generally will discharge the nonbreaching party. Choice "b" is not as good an answer as "a". While a delay in performance could cause a discharge, it will do so only if the contract states that time is of the essence or the delay otherwise materially breaches the contract. Choice "c" is incorrect. Generally if a party tenders performance, the other party will also have to perform. Tender of performance does not discharge the other party. Choice "d" is incorrect. Generally, contracts are assignable, and an assignment of rights will not discharge the other party from performing. CPA-01084 Type1 M/C A-D Corr Ans: C PM#3 R 5-01 3. CPA-01084 Lw R99 #8 Page 19 Which of the following will release all original parties to a contract but will maintain a contractual relationship between the original parties? Substituted Novation contract a. Yes Yes b. Yes No c. No Yes d. No No CPA-01084 Explanation Choice "c" is correct. In a Novation, the agreement is unchanged but one of the original parties is released and a new party is substituted into their place.
Background image of page 2
Becker CPA Review, PassMaster Questions Lecture: Regulation 5 3 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. In a substituted contract , the original parties are both released from the original agreement but are both bound by a new agreement. CPA-01092
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/25/2011 for the course ACCOUNTING AC555ON taught by Professor Abekele during the Spring '10 term at Keller Graduate School of Management.

Page1 / 80

Regulation 5 PassMaster Questions - Becker CPA Review,...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online