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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
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
A.The main goal of antitrust law is to promote economic competition.
B.Among the most important antitrust statutes are:
1.The Sherman Act (1890) -a.Section 1 prohibits "contracts, combinations, and conspiracies in restraint of
A.Sole Proprietorships -1.No formal filing is required for the creation of sole proprietorships.
2.However, to do business, a sole proprietorship, like other forms of organization, may
need to acquire a tax number and a license to,
Selection of a Business Entity
A.Businesses may be structured in numerous ways to attain various benefits. Ranging
from a simple sole proprietorship (one-owner business) to large multi-national
corporations, firms are structured to gain var
Money Laundering : This is the process by which one conceals the existence, illegal source, or
illegal application of income, and disguises that income to make it appear legitimate.
A.Background - Money launderi
A.Sole Proprietorships -1.A sole proprietorship naturally terminates when the sole owner dies or otherwise
departs the business.
B.General Partnerships -1.Under RUPA, the fact that partners are added to or removed from the partnership
A.Sole Proprietorships - The sole owner of a sole proprietorship makes all important
decisions or delegates these decisions to someone of his or her choosing.
B.General Partnerships -1.Absent agreement to the contrary, all partners have equa
Rights and Duties
A.As noted earlier, absent agreement to the contrary partners are entitled to:
1.Equal management rights; and
2.Have their capital contribution repaid and to equally share in profits.
B.Partnership property belong
Authority of Owners and Management
A.Agency law - In partnerships, agency law tends to govern regarding the authority of
partners to bind the partnership.
B.General principles - As a general rule, agency law provides:
1.An act of a partner
Because all the partnership forms (GPs, LPs, LLP, LLLPs) automatically allocate income to
partners or members and can elect single (pass-through) taxation, the key more complicated
financial issues tend to relate to cor
Tax Law Update Spring 2015
The Tax Increase and Prevention Act of 2014 extended the following provisions to 2014. Thus,
these items do apply for the 2014 tax law. However, Congress has not extended these provisions
to 2015 at the time of this writing.
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
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
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
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
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
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
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
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
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
Sales and Dispositions of Assets
Categories of Assets
Assets can be divided into three mutually exclusive categories: ordinary, Section 1231, and
A.Ordinary assets -1.Inventory and accounts/notes receivables are ordinary assets.
Section 1231 AssetsCost Recovery
Tax Form for this Lesson: Form 4562
Depreciation deductions are allowed for assets used to produce income, but the deductions must
be calculated using cost recovery rules.
A.Cost recovery rules - Cost recov