PRE-ASSESSMENT: BUSINESS LAW FOR ACCOUNTANTS
(WHC1) PWHC
1.
What is the purpose of informal agency actions?
To provide an informal means to resolve a dispute
To rectify a dispute to the agency’s satisfaction
To allow an agency to take an administrative act against an individual or organization
To provide advance notice that formal rulemaking may be forthcoming
2.
Which action has the government implemented in order to minimize health care costs?
Insurance companies cannot increase rates for two years and must apply for an increase after two years.
Insurance companies must spend at least 80% of individual premiums on benefits or pay a rebate to the insured.
Insurance companies are required to participate in the National Health Exchange.
Insurance companies must spend at least 80% of individual premiums on benefits or are required to decrease rates.
3.
Which act did Congress pass in 2011 to give the Food and Drug Administration (FDA)
greater authority to recall any food products suspected to be tainted?
Federal Food, Drug, and Cosmetic Act
Federal Drug Administration Act
Food Safety Modernization Act
Consumer Food Safety Act
4.
A specialized debt-collection agency contacted a consumer at his home at four o’clock in
the morning to collect a past due medical bill owed by the consumer’s mother. During the
call, the collection agency harassed and threatened the consumer if payment of the debt
was not forthcoming.
Which federal statute prohibits this type of collection tactic?
, The Truth-in-Lending Act
The Fair Credit Reporting Act
The Equal Credit Opportunity Act
The Fair Debt Collection Practices Act
5.
What is the purpose of the Comprehensive Environmental Response, Compensation, and
Liability Act?
To compensate individuals impacted by leaking hazardous waste
To prohibit the dumping and disposal of hazardous waste
To regulate the cleanup of hazardous waste disposal sites
To determine which forms of solid waste are considered hazardous
6.
Which act regulates the cleanup of hazardous waste disposal sites?
Toxic Substances Control Act
Resource Conservation and Recovery Act
Federal Insecticide, Fungicide, and Rodenticide Act
Comprehensive Environmental Response, Compensation and Liability Act
7.
What is the purpose of Section 2 of the Clayton Act?
To prohibit price discrimination agreements
To prohibit exclusive dealing contracts
To prohibit tying agreements
To prohibit price fixing contracts
, 8.
A certified public accountant (CPA) is engaged to perform an audit for a company. During
the course of the audit, the CPA accepts explanations from management of financial data
irregularities that seem to indicate fraud. The CPA issues a clean opinion on the
company’s financial statements. Investors extend additional funding to the company
based on the financial statements issued by the CPA. A short time later, the company
declares bankruptcy and closes. The investors suffer losses and file a motion to sue the
CPA for gross negligence due to fraud.
Which type of fraud did this CPA engage in?
Actual fraud
Constructive fraud
Material fraud
Professional fraud
9.
How does the Private Securities Litigation Reform Act of 1995 impact the liability of
accountants?
By increasing the penalty for an accountant who is found guilty of violating security laws
By limiting an accountant’s liability to a proportionate share of the damage resulting from a wrongful act
By increasing an accountant’s potential liability by making the release of false and misleading reports a felony offen
By ruling that an accountant is not liable for errors and omissions if the accountant acted in good faith
10.
Which worker is eligible for unemployment compensation under the Federal
Unemployment Tax Act?
An independent contractor who is terminated from a long-term project by a company
A staff member who is involuntary terminated and actively seeking employment
A manager who resigns from a company because of a change in company vision
An executive who is fired for workplace misconduct
11.
Which employer requirement is included in Davis-Bacon Act?
(WHC1) PWHC
1.
What is the purpose of informal agency actions?
To provide an informal means to resolve a dispute
To rectify a dispute to the agency’s satisfaction
To allow an agency to take an administrative act against an individual or organization
To provide advance notice that formal rulemaking may be forthcoming
2.
Which action has the government implemented in order to minimize health care costs?
Insurance companies cannot increase rates for two years and must apply for an increase after two years.
Insurance companies must spend at least 80% of individual premiums on benefits or pay a rebate to the insured.
Insurance companies are required to participate in the National Health Exchange.
Insurance companies must spend at least 80% of individual premiums on benefits or are required to decrease rates.
3.
Which act did Congress pass in 2011 to give the Food and Drug Administration (FDA)
greater authority to recall any food products suspected to be tainted?
Federal Food, Drug, and Cosmetic Act
Federal Drug Administration Act
Food Safety Modernization Act
Consumer Food Safety Act
4.
A specialized debt-collection agency contacted a consumer at his home at four o’clock in
the morning to collect a past due medical bill owed by the consumer’s mother. During the
call, the collection agency harassed and threatened the consumer if payment of the debt
was not forthcoming.
Which federal statute prohibits this type of collection tactic?
, The Truth-in-Lending Act
The Fair Credit Reporting Act
The Equal Credit Opportunity Act
The Fair Debt Collection Practices Act
5.
What is the purpose of the Comprehensive Environmental Response, Compensation, and
Liability Act?
To compensate individuals impacted by leaking hazardous waste
To prohibit the dumping and disposal of hazardous waste
To regulate the cleanup of hazardous waste disposal sites
To determine which forms of solid waste are considered hazardous
6.
Which act regulates the cleanup of hazardous waste disposal sites?
Toxic Substances Control Act
Resource Conservation and Recovery Act
Federal Insecticide, Fungicide, and Rodenticide Act
Comprehensive Environmental Response, Compensation and Liability Act
7.
What is the purpose of Section 2 of the Clayton Act?
To prohibit price discrimination agreements
To prohibit exclusive dealing contracts
To prohibit tying agreements
To prohibit price fixing contracts
, 8.
A certified public accountant (CPA) is engaged to perform an audit for a company. During
the course of the audit, the CPA accepts explanations from management of financial data
irregularities that seem to indicate fraud. The CPA issues a clean opinion on the
company’s financial statements. Investors extend additional funding to the company
based on the financial statements issued by the CPA. A short time later, the company
declares bankruptcy and closes. The investors suffer losses and file a motion to sue the
CPA for gross negligence due to fraud.
Which type of fraud did this CPA engage in?
Actual fraud
Constructive fraud
Material fraud
Professional fraud
9.
How does the Private Securities Litigation Reform Act of 1995 impact the liability of
accountants?
By increasing the penalty for an accountant who is found guilty of violating security laws
By limiting an accountant’s liability to a proportionate share of the damage resulting from a wrongful act
By increasing an accountant’s potential liability by making the release of false and misleading reports a felony offen
By ruling that an accountant is not liable for errors and omissions if the accountant acted in good faith
10.
Which worker is eligible for unemployment compensation under the Federal
Unemployment Tax Act?
An independent contractor who is terminated from a long-term project by a company
A staff member who is involuntary terminated and actively seeking employment
A manager who resigns from a company because of a change in company vision
An executive who is fired for workplace misconduct
11.
Which employer requirement is included in Davis-Bacon Act?
