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Student: Frazier, Kerronique (kerronique)
Score: 12 out of 15 (80%)
Date: 04/25/2013 23:17
Private not-for-profits use
record encumbrances to
maintain budgetary contr
Chapter 9 EZ- Test
City and county governments
are typically classified as
special purpose governments.
According to GASB Statement
No. 34, "General-purpose
governments are thought to be
those that offer more than one
type of basic go
Question #1 (AICPA.930541REGBL)
The following endorsements appear on the back of a negotiable promissory note payable to
Which of the following statements is correct?
A. The note became nonnegotiable as a result of Parker's
Types of Real Property Interests
A.Freehold estatespossessory interests -1.Fee simple estate - A person has complete ownership for an unlimited duration to
do with the property as he or she legally chooses.
2.Fee simple defeasible estate
Title VII of the Civil Rights Act of 1964
Forbids discrimination in employment based on -Three employees, one black and two white, were caught stealing
from the employer. The employer fired only the two white
The Dodd-Frank Act of 2010
Dodd-Frank Act of 2010
A.Following the subprime mortgage crisis and financial meltdown, it is unsurprising that new
regulations were enacted. In 2010, Congress passed and President Obama signed the DoddFrank Wall Street Refor
1933 Securities Act
A.Accountants are liable for any "willful" violation of any provision of the 1933 Act.
B.Penalties: Up to $10,000 fine and/or 5 years in jail.
1934 Securities Exchange Act
A.Accountants are liable for any "wil
Liability Provisions1933 Act
I.The 1933 Act
Because the 1933 Act focuses on the initial sale of securities, accountants' liability arises
primarily due to inaccurate audited financial statements contained in the registration
statement that must be filed w
Federal Social Security Act - Social Security Benefits
A.Purpose - To provide partial replacement of earnings when a worker retires.
B.Mechanism - Monthly benefits are paid to retired insured worker from age 62 onward.
Federal Unemployment Tax Act (FUTA)
Provide unemployment compensation benefits to workers who lose jobs and can't find new ones.
A.Federal unemployment tax - Must be paid by employer who employs persons covered
by the act.
Employee Retirement Income Security Act of 1970 (ERISA)
A.Purpose -1.Protect employee rights in existing pension plans.
2.Offer tax incentives to employers and employees to fund employee benefit plans by
providing that if the plans me
Federal Fair Labor Standards Act (FLSA)
A.Applies to all businesses that affect interstate commerce.
B.Four major sections:
3.Child Labor Restrictions;
4.Equal Pay Provision.
Four Major Sections
Union and Employee Relations
A.Much strife accompanied early attempts of workers to organize in unions when bargaining
with their employers, causing Congress to pass several important laws, including:
1.The Norris-LaGuardia Act - it prohib
Health and Safety
Workers' Compensation Act
A.Purpose - Provide nearly automatic compensation for employees who suffer work-related
injuries or diseases.
1.Many people think of workers' compensation as remedying only on-the-job injuries,
but it also pr
I.The JOBS Act of 2012
A.Introduction -1.The JOBS Act is not really a "jobs" act. It is a securities law that amended
federal law with the goal of making it easier for small companies to raise
capital with the hope that this would eventually lead to job c
Purposes, Requirements and Provisions of the 1934 Act
Provide regular disclosure by major companies even when they are not raising capital by
filing registration statements.
In communications regarding the purchase and
The Registration Process
Requirements and Basic Procedure
A.The 1933 Act's requirements cover -1.Initial public offerings, wherein companies sell to the general investing public for the
2.Seasoned offerings, wherein public companies print a
At this point, either the voluntary petition has been accepted by the bankruptcy court or the
involuntary petition has been held to be valid. No matter how the parties got into bankruptcy
court, the court follows a similar p
Discharge and Reaffirmation Agreements
After the estate has been distributed, the court will grant the debtor a discharge decree (at a
hearing), that releases the debtor from further liability of his or her debts. This decree is
Prebankruptcy Options and Introduction to Bankruptcy
When the Debtor Does Not Pay - Options for Creditors
A.Creditors may execute rights under Article 9 secured transactions and/or suretyship
B.Creditors may foreclose on liens.
Types of Agency Relationships and Creation
Agency Relationship and Parties
A.One party designates another to act on his, her, or its behalf.
A corporation authorizes its CEO to negotiate a merger.
A storeowner hires a clerk to receive payments
Distribution of Debtor's Estate
Determining the Debtors: The Filing of a Proof of Claim
Any creditor, equity security holder, co-debtor, surety or guarantor may file proof of any legal
claim or interest on behalf of a creditor, or trustee.
A.Time for f
Tort Liability of Agents and Principals
Agents are liable for the torts they commit.
Misconception: Many people believe that agents are not liable for the torts they commit if they
were ordered to commit the torts by their boss.
Contract Liability of Agents and Principals
Contract Relationships of Principals, Agents, and Third Parties
The liability of the principal and agent to third parties for contracts and the ability of third parties
to enforce contracts against principals
Duties of Agents and Principals
Duties of Principal to Agent
A.To comply with agency agreement - As with any other contract, a principal must follow
the terms of the agency contract.
Paula Prentice (principal) hired Alex Reger (agent) to serve
Defining a "Security"
A.The statutory definition ('33 Act) contains a laundry list, plus catch-all terms, broadly
defining asecurity to mean:
"Any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of
Exempt Transactions and Securities
Bank and Government Securities
A.Rationale - Bank and government securities are heavily regulated by other federal and
B.Limitation - Public utilities are not exempt.
There are four primary types of intellectual property.
A.First, trademarks are any distinctive words, phrases, symbols, or designs adopted for the
purpose of identifying the origin of goods being offered for sale. The Nike "swoosh" i
A patent is a government-granted exclusive right to make, use or sell an invention. Governments
protect patents in order to encourage inventive activity, just as they protect copyrights to reward