Quizbowl 2.doc

QUIZBOWL PRACTICE

BUSINESS LAW

1. Contra Contract ct with with a false false cause cause is: a. voidable c. unenforceable b. void d. all of the above B 2. An obli obliga gati tion on wher wherei ein n vari variou ouss thing thingss are are due, due, but but the the paym paymen entt of all all is requir required ed in orde orderr to distinguish the obligation is called: a. simple obligation c. conoint obligation b. alternative obligation d. facultative obligation C !. A contract contract where where both both parties parties are are incapab incapable le of giving giving consent consent is: is: a. voidable c. unenforceable b. void d. all of the above C ". #hich #hich is the lea least st defe defecti ctive ve contr contract act$$ a. rescissible contract c. unenforceable contract b. voidable contract d. void contract A   %. & sold to B a specifi specificc car for '1(( '1((,((( ,((( payab payable le in four )"* )"* equal equal insta installm llment ents. s. +irst +irst and secon second d installments, B failed failed to pay. he right of & is: a. e-act fulfillment of the obligation c. demand payment from B b. cancel the sale d. all of the above  /. A sold to B the the former0s former0s horse horse for '%,(((. '%,(((. o date date is fi-ed fi-ed by the parties parties for for the performa performance nce of their their respective obligations. obligations. he obligation of A is: a. to deliver deliver the the horse horse immediat immediately ely as there is a perfect perfected ed contract contract b. to deliv deliver er the the horse horse upon upon payme payment nt by B of of '%,((( '%,((( c. to deliver deliver the the horse within within a reason reasonable able time time of two two months from from the contra contract ct date d. to rescin rescind d the the contra contract ct as as ther there e is is no no time timed d fi-e fi-ed d for for the delive delivery ry and paymen paymentt B . ' appointed appointed A as his agent agent with with general general powers powers on 3anuary 3anuary 1. he ne-t ne-t day, day, 4 transact transacted ed business business with A. 5n 3anuary %, ' revo6ed the agency agency and published it in a newspaper of of general circulation. 7owever, 7owever, 4 did not read the newspaper newspaper publication. publication. After % days, )3anuary )3anuary 1(* 4 consummated consummated another transaction with with A. 8s the act of A binding against against '$ a. yes, yes, bec becau ause se 4 is is in good good fai faith th b. no, because because the agency agency is considered considered revo6e revo6ed d and its publicat publication ion is a sufficient sufficient warnin warning g c. no, because because the the power power is general, general, there there m must ust be be a special special power d. yes, because there was no special notice sent to 4 B 9. ' appointed appointed A as as his agent agent orally orally to sell sell his parcel parcel of of land for for '1(,(((. '1(,(((. +ive days days after, after, A sold sold to B the parcel of land for for '9,((( by means of a public public instrument e-ecuted between A and B. #hat is the effect and status of sale between A and B$ a. the sale sale is valid valid because because it was was e-ecuted e-ecuted in in a public public instrument instrument b. the sale is unenfor unenforceabl ceable e because because the agent agent acted beyond beyond the scope scope of his authori authority ty for selling the land for less than the price instructed c. the sale sale is void because because the the appointm appointment ent of of the agent is oral oral d. the sale sale can be ratifie ratified d although although the appoin appointment tment of A is oral, oral, because because the sale sale by A to B is in a public instrument C .  pledged pledged his his ring ring to C for '1(,(((. '1(,(((.  failed failed to to pay his obliga obligation tion on time. C sold sold it at at public public auction auction for '9,(((. a. C can can recover recover the deficiency deficiency even without without stipul stipulatio ation n b. C cannot cannot recover recover the the deficienc deficiency y even if there there is stipu stipulati lation on c. C canno cannott reco recove verr the the defi defici cien ency cy d. C can recover the deficiency B 1(. A, B, and and C borr borrow owed ed from from  '!((, '!((,(( (((, (, and and as a secur securit ity, y, they they mort mortga gage ged d thei theirr undiv undivid ided ed agricultural land to . &ubsequently, A paid  '1((,(((. '1((,(((. 8s the mortgage on A0s share of the land land e-tinguished$ a. yes, becaus because e the obligatio obligation n of A on the the debt is only only '1((,((( '1((,((( b. yes, the obliga obligation tion of the the debtors debtors is oint, oint, A is answer answerable able only only for '1((,((( '1((,((( c. no, because because the obliga obligation tion is solidar solidary, y, payment payment in part part shall not e-ting e-tinguish uish the obliga obligation tion secured by the mortgage d. no, because because mortgages mortgages are consider considered ed indivisibl indivisible, e, payment payment in part shall shall not e-tinguish e-tinguish the mortgage  11. A and B are partners partners engaged engaged in real estate estate business. business. A learned learned that C was interested interested in buying buying a certain parcel of land owned by the partnership, partnership, even for a higher price. #ithout informing B, A was able to ma6e B sell to him )A* his )B0s* share share in the partnership. hen A sold the land at a big profit. profit. a. A is liable liable to B for the the latter latter0s 0s share share in the the profit profit b. C is liable liable to B for the the latter latter0s 0s share share in the profit profit c. the partne partnership rship is dissolv dissolved ed when when A became became the the sole sole owner owner d. the sale of the land to C is void since it was without the 6now nowledge of B A 

12. he remedy of capitalist partners partners against an industrial industrial partner who engaged engaged in a business for himself  without the e-pressed permission from the partnership is: a. to compel compel the industria industriall partner partner to sell his intere interest st to the said said capitalist capitalist partne partners rs b. to e-clude e-clude him him from sharing sharing in the the profits profits of the partner partnership ship c. to remove remove him as manager manager if he is is appointed appointed as as manager manager of the partner partnership ship d. to e-pel him from the partnership and claim for managers  1!. 7ow 7ow ma many ny numb number er of votes votes of the the Boar Board d of irect irector orss are are requ requir ired ed to chan change ge the name name of a corporation$ a. 2;! vote vote of all all memb members ers of the the Boar Board d b. 2;! vote vote of all all pre prese sent nt c. ma maori ority ty vote vote of all all presen presentt constit constituti uting ng a quorum quorum d. maority vote of the Board  1". After a corporation corporation is dissolved, dissolved, it shall nevertheless nevertheless be continued to enable it to liquidate liquidate its affa affairs irs for a period of: a. 1 year c. ! years b. 2 years d. % years C 1%. An endorsement endorsement which specifies specifies the person person to whom, or to whose order the instrument instrument is to be payable is called: a. blan6 endorsement c. qualified endorsement b. special endorsement d. restrictive endorsement B 1/. #hich of the following following is not considered considered a necessary necessary requirement requirement in order to ma6e an instrument instrument negotiable$ a. it must must be payable payable on on demand demand or at a fi-ed fi-ed future future time time b. it must must be in in writin writing g and sign signed ed by the the ma6er ma6er c. it must must be payabl payable e only only to a speci specifie fied d perso person n d. it must contain an unconditional promise to pay a sum certain in money C

MANAGEMENT ADVISORY SERVICES

1. off further processing A 1(,((( '2% '/(,((( '!( B 2(,((( '!( '2(,((( '!% C !(,((( '1( '(,((( '1% #hich products should be processed further$ a. A only b. A and B c. B and C d. A, B and C C 9. Budgets Budgets set set at at very very high high levels levels of perfor performance mance:: a. assist assist in in planni planning ng the the operat operation ionss of the compa company ny b. stimulates stimulates people people to perfor perform m better better than than they ordinaril ordinarily y would c. are h helpfu elpfull in evaluatin evaluating g the performan performance ce of managers managers d. can lead to low levels of performance  . #hich of the the following following is a differenc difference e between between a static budget budget and a fle-ibl fle-ible e budget$ budget$ a. a fle-ible fle-ible budget budget includes includes only variable variable costs, costs, a static static budget includ includes es only fi-ed fi-ed costs costs b. a fle-ible fle-ible budget budget includes includes all costs, costs, a static budget budget includes includes only only fi-ed fi-ed costs

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a fle-ib fle-ible le budget budget gives differe difference nce allowan allowances ces for differe different nt levels levels of activit activity, y, a static static budget does not. d. none C &am manufacture manufacturess a single product. product. 8t 6eeps its its inventory inventory of finished finished goods at twice twice the coming month0 month0ss budget budgeted ed sales, sales, invent inventory ory of raw materi materials als at 1%(= of the coming coming month0 month0ss budget budgeted ed production production.. @ach unit of output output require requiress two pounds of materia materials. ls. he productio production n budget is, is, in units: forma ma state statemen mentt ordina ordinaril rily y shall shall be: a. colu column mnar ar in form format at b. showin showing g condens condensed ed histor historica icall stateme statements nts c. pro> pro>fo form rma a adu adust stme ment ntss d. pro> pro>fo form rma a res resul ults ts #hich of the above items are reflected$ a. A and B only c. A, B, C and  b. C and  only d. A, B and  C Consol Consolida idated ted financi financial al statemen statements ts will be pre prepar pared ed for parent parent and subsidi subsidiary ary when any of the following, e-cept: a. control control is temporar temporary y as when subsidi subsidiary ary must must be disposed disposed of of under court court b. it is an issuer issuer of register registered ed securiti securities, es, ban6s, ban6s, finance finance company, company, investme investment nt company, company, investment house c. the total total liability liability of any entity entity in in the group group is more than than '%( million million or the total total liabilit liability y of  the group is more than '1%( million d. if parent and subsidiaries are engaged in dissimilar activities A  8f annual annual maor repairs repairs made made in the first quart quarter er and paid for for in the second second quarter quarter clearly clearly benefit benefit the entire year, when should they be e-pensed$ a. in ful fulll in the the fir first st qua quart rter er b. in ful fulll in the the sec secon ond d quar quarte terr c. an alloc allocate ated d portio portion n in each each quart quarter er of the the year year d. all e-penses e-penses affecting affecting more more than one quarte quarterr should be recogni recognied ed in the last year year of the fiscal year C he he &ept &eptem embe berr !(, 2((!, 2((!, phys physic ical al inve invent ntor ory y  Comp Compan any y appr approp opri riat atel ely y incl includ uded ed '!,9 '!,9(( (( of  merchandise purchased on account which was was not recorded in in purchases until 5ctober 2((!. #hat effect will this error have on &eptember !(, 2((! assets, liabilities, retained earnings, and earning for the year then ended, respectively$ a. unders understat tate, e, no effect, effect, overs oversta tated ted,, overstat overstate e b. no effect effect,, overst overstate, ate, understate understate,, unders understate tate c. no effect effect,, underst understate ate,, oversta overstate, te, overs overstat tate e d. no effect, understate, understate, overstate C A company company sold sold a used oper operati ationa onall asset asset at a '2(,((( '2(,((( loss. loss. he loss loss should should be class classifi ified ed on the income statement as: a. an e-traordinary item c. a prior>period adustment b. an operating e-pense d. an unusual or infrequent item B eporting eporting e-traor e-traordinar dinary y items on the income income statement statement more closely closely follows follows which concept concept of net income: a. all inclusive c. full disclosure principle b. current operating d. multiple step A   A company has identifi identified ed one of its business business segments segments as being the product production ion of computer computer software. software. #hic #hich h of the the foll follow owin ing g shoul should d not not be incl includ uded ed in dete determ rmin inin ing g his his segme segment nt0s 0s reve revenu nue e for for disaggregation purposes$ a. intere interest st inco income me on inters intersegm egment ent loan loanss b. interest interest income income on intersegm intersegment ent trade trade receiva receivables bles c. interest interest income income on trade trade receivable receivabless with with outside outside parties parties d. interest income on loans made to outside parties A  A firm identified identified four business business segments segments as reportabl reportable e out of a total of 9 subunits of the firm based on the identifiable assets assets criterion. otal company sales e-cluding e-cluding intersegment sales are '2,(((,((( for the year, and the sum of sales for the four identified identified segments segments is '1,!((,(((. '1,!((,(((. herefore, herefore, the firm: a. need not repor reportt on a segment segment basis basis for this period period b. must identify identify one one or more additio additional nal segments segments for segment segmental al disclosure disclosure purpose purposess c. must disc disclos lose e only the the four four sub>un sub>units its as as segmen segments ts d. treat all sub>units of the firm as reportable B

PRACTICAL ACCOUNTING 1

1. 5n ecember ecember !1, a corporation corporation had a wor6ing wor6ing capital capital )current* )current* ratio ratio of 2, and reported reported the following following accounts:   Assets As @quities Cash '",((( Accounts payable '2,((( Accounts receivable 1!,((( #ages payable /,((( 8nventory /,/(( 8nterest payable ",((( 'repaid insurance 1,((( Bonds payable 1",((( @quipment )net* 2",((( etained earnings 2,/(( herefore, the balance in the allowance for doubtful accounts was: )a* '/(( )b* '!(( )c* '2(( )d* '( A  

2. 5de, 8nc. 8nc. has %,(((,((( %,(((,((( shares shares of common common stoc6 stoc6 outstandi outstanding ng on ecembe ecemberr !1, 2((!. 2((!. An addition additional al 1,(((,((( shares of common stoc6 were issued on April 1, 2((", and %((,((( more on 3uly 1, 2((". 5n 5ctober 1, 2((", 5de issued issued 1(,((( '1,((( '1,((( face value, = convertib convertible le bonds. @ach bond is convertible into "( shares of common stoc6 and were considered potential common shares and no bonds were were converted converted into common common stoc6 in 2((". #hat is the number number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively$ )a* %,%(,((( and %,%(,((( )c* /,(((,((( and /,1((,((( )b* %,%(,((( and /,1%(,((( )d* /,(((,((( and /,((,((( C !. he following following inform informatio ation n is available available for for #a6i #a6i 3ewelry 3ewelry and Hift Hift &tore: &tore: et income '%,((( epreciation e-pense 2,%(( 8ncrease in deferred ta- liabilities %(( ecrease in cash !,((( ecrease in accounts receivable 2,((( 8ncrease in inventories ,((( ecrease in accounts payable %,((( 8ncrease in accrued liabilities 1,((( 8ncrease in property and equipment 1",((( 8ncrease in short>term notes payable 1,((( ecrease in long>term notes payable ",((( #hat is the net cash flow from financing activities$ )a* '1%,((( )b* )'1%,(((* )c* '1,(((

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A 

". A company provide providess residential residential carpet carpet cleaning cleaning at a rate rate of '2" per month or '2%( '2%( per year if paid paid one year in advance. @-amination of the ban6 ban6 deposits revealed the following: following:  Accounts receivable 1;1 '12,/(( Cash collected from customers )including advances* 19,(((  Advances from customers 12;!1 2,/((  Accounts receivable 12;!1 ,/((  Advances from customers 1;1 2,((( evenue for the year was: )a* '1","(( )b* '1%,/(( )c* '12,/(( )d* '1,"(( A   %. he following following inform informatio ation n were found found in the the boo6s of of Inight Inight Corporat Corporation: ion: econciled balance in