9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 1
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 1/100
,9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 2
intro.creat.sec.aq.005_0819
LOS: List the requirements for the creation of a security interest.
Lesson Reference: Introduction and Creation of Security Interests
Difficulty: hard
Bloom Code: 4
Emily has been running a flower shop as a sole proprietor. She purchased refrigerators for her flowers for $25,000 with Pimco Bank providing the funds for
the order and purchase of those refrigerators. On February 1, Emily signed a security agreement presented to her by Pimco Bank that covered the
refrigerators and all other after-acquired equipment in the flower shop. The refrigerators were delivered on March 10. On March 11, Pimco Bank filed a
financing statement covering the refrigerators. On which date was the security interest attached?
February 1
March 10
March 11
The security interest has not yet attached because the bank was not the actual seller of the goods.
Rationale
February 1
Incorrect. In order to create a security interest, there must be a security agreement, an underlying debt, and interest in the collateral. Those three
elements were not all present on February 1.
Rationale
March 10
Correct! Once Emily has an interest in the refrigerators, the security interest attaches. With the refrigerators being delivered, we know that she has an
interest in the collateral and meets the third requirement for attachment.
Rationale
March 11
Incorrect. The security interest attached earlier than this date, when the three components were met: Debtor owes creditor money, debtor has an
interest in the collateral, and there is a record of the security agreement.
Rationale
The security interest has not yet attached because the bank was not the actual seller of the goods.
Incorrect. A creditor who advances money for a purchase, although not the seller, can hold a valid security interest.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 2/100
,9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 3
BSTR-0071
Lesson Reference: Termination
Difficulty: medium
Under the Revised Uniform Limited Partnership Act and in the absence of a contrary agreement by the partners, which of the following events is most likely
to dissolve a limited partnership?
A majority vote in favor by the partners.
A two-thirds vote in favor by the partners.
A withdrawal of a majority of the limited partners.
Withdrawal of the only general partner.
Rationale
A majority vote in favor by the partners.
This answer is incorrect because dissolution requires unanimous consent of all partners.
Rationale
A two-thirds vote in favor by the partners.
This answer is incorrect because dissolution requires unanimous consent of all partners.
Rationale
A withdrawal of a majority of the limited partners.
This answer is incorrect because withdrawal by all limited partners would be required to dissolve the partnership.
Rationale
Withdrawal of the only general partner.
This answer is correct because the withdrawal of the only general partner will dissolve the partnership.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 3/100
, 9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 4
AICPA.081958REG-2.D.1
Lesson Reference: Criminal Liability
Difficulty: medium
Bloom Code: 3
Turtle was audit partner on ABC Accounting's audit of Jemison Corporation. Turtle knew that the audit was ineptly performed, although he hoped (without
much reason) that the financial statements were accurate. He certified them as such. Which of the following is true?
If a court decided that Turtle had acted willfully, he could be held criminally liable under the federal securities laws.
If a court decided that Turtle had acted negligently, he could be held criminally liable under the federal securities laws.
Both A and B.
None of the above.
Rationale
If a court decided that Turtle had acted willfully, he could be held criminally liable under the federal securities laws.
The federal securities laws' criminal provisions punish "willful" violations of the 1933 and 1934 securities acts.
Rationale
If a court decided that Turtle had acted negligently, he could be held criminally liable under the federal securities laws.
Mere negligence is an insufficient basis for criminal liability under the federal securities laws.
Rationale
Both A and B.
Because B is wrong, this answer is necessarily wrong.
Rationale
None of the above.
Because A is correct, this answer is necessarily wrong.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 4/100
Question 1
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 1/100
,9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 2
intro.creat.sec.aq.005_0819
LOS: List the requirements for the creation of a security interest.
Lesson Reference: Introduction and Creation of Security Interests
Difficulty: hard
Bloom Code: 4
Emily has been running a flower shop as a sole proprietor. She purchased refrigerators for her flowers for $25,000 with Pimco Bank providing the funds for
the order and purchase of those refrigerators. On February 1, Emily signed a security agreement presented to her by Pimco Bank that covered the
refrigerators and all other after-acquired equipment in the flower shop. The refrigerators were delivered on March 10. On March 11, Pimco Bank filed a
financing statement covering the refrigerators. On which date was the security interest attached?
February 1
March 10
March 11
The security interest has not yet attached because the bank was not the actual seller of the goods.
Rationale
February 1
Incorrect. In order to create a security interest, there must be a security agreement, an underlying debt, and interest in the collateral. Those three
elements were not all present on February 1.
Rationale
March 10
Correct! Once Emily has an interest in the refrigerators, the security interest attaches. With the refrigerators being delivered, we know that she has an
interest in the collateral and meets the third requirement for attachment.
Rationale
March 11
Incorrect. The security interest attached earlier than this date, when the three components were met: Debtor owes creditor money, debtor has an
interest in the collateral, and there is a record of the security agreement.
Rationale
The security interest has not yet attached because the bank was not the actual seller of the goods.
Incorrect. A creditor who advances money for a purchase, although not the seller, can hold a valid security interest.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 2/100
,9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 3
BSTR-0071
Lesson Reference: Termination
Difficulty: medium
Under the Revised Uniform Limited Partnership Act and in the absence of a contrary agreement by the partners, which of the following events is most likely
to dissolve a limited partnership?
A majority vote in favor by the partners.
A two-thirds vote in favor by the partners.
A withdrawal of a majority of the limited partners.
Withdrawal of the only general partner.
Rationale
A majority vote in favor by the partners.
This answer is incorrect because dissolution requires unanimous consent of all partners.
Rationale
A two-thirds vote in favor by the partners.
This answer is incorrect because dissolution requires unanimous consent of all partners.
Rationale
A withdrawal of a majority of the limited partners.
This answer is incorrect because withdrawal by all limited partners would be required to dissolve the partnership.
Rationale
Withdrawal of the only general partner.
This answer is correct because the withdrawal of the only general partner will dissolve the partnership.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 3/100
, 9/14/2020 Wiley CPAexcel - REG - Assessment Review
Question 4
AICPA.081958REG-2.D.1
Lesson Reference: Criminal Liability
Difficulty: medium
Bloom Code: 3
Turtle was audit partner on ABC Accounting's audit of Jemison Corporation. Turtle knew that the audit was ineptly performed, although he hoped (without
much reason) that the financial statements were accurate. He certified them as such. Which of the following is true?
If a court decided that Turtle had acted willfully, he could be held criminally liable under the federal securities laws.
If a court decided that Turtle had acted negligently, he could be held criminally liable under the federal securities laws.
Both A and B.
None of the above.
Rationale
If a court decided that Turtle had acted willfully, he could be held criminally liable under the federal securities laws.
The federal securities laws' criminal provisions punish "willful" violations of the 1933 and 1934 securities acts.
Rationale
If a court decided that Turtle had acted negligently, he could be held criminally liable under the federal securities laws.
Mere negligence is an insufficient basis for criminal liability under the federal securities laws.
Rationale
Both A and B.
Because B is wrong, this answer is necessarily wrong.
Rationale
None of the above.
Because A is correct, this answer is necessarily wrong.
https://app.efficientlearning.com/pv5/v8/5/app/cpa/reg.html?# 4/100
