[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Tax lady]

Glad to help!

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

Yay @Tax Lady! You rock!

[Anonymous]

@Tax lady – D – Employer/Principal?

[Tax lady]

I miss the Hiyas!

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[MommyBear]

D is correct! The Ninja explanation is “The rule applies when the seller is on the cash basis and the buyer is on the accrual basis. The buyer may not deduct the expense until the seller has reported the income.”

I picked C for the opposite reason. The accrual basis seller cannot report the income until the cash basis buyer has reported the expense of the payment.

Why couldn't they both be right??

[MommyBear]

Tax Lady–B, Employer and independent contractor?

[WANNABE_CPA]

Which of the following statements best states the purpose of cumulative voting?

A.

To assure the continuance of incumbent directors

B.

To allow minority shareholders to gain representation on the board of directors

C.

To allow for the election of one-third of the board of directors each year

D.

To assure that a majority of shares voted elects the entire board of directors

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Tax lady]

Yes, it's B. Do you understand why Bucky?

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

@Wannabe – B

[Tax lady]

An independent contractor is described as someone who works for you but you don't control things like their daily activities and working hours.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

@Tax Lady – I do understand. I missed the Independent Contractor one! This cold sucks!!

[MommyBear]

wannabe–B

[Tax lady]

Ott and Bane agreed to act as cosureties on an $80,000 loan that Cread Bank made to Dash. Ott and Bane are each liable for the entire $80,000 loan. Subsequently, Cread released Ott from liability without Bane’s consent and without reserving its rights against Bane. If Dash subsequently defaults, Cread will be entitled to collect a maximum of

$0 from Bane.

$0 from Dash.

$40,000 from Bane.

$40,000 from Dash.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[MommyBear]

C–$40,000 from bane

[Tax lady]

This answer is correct. Cosureties exist when there is more than one surety guaranteeing the same obligation of the principal debtor. Unless the creditor specifically reserves his/her rights, a release of a cosurety by the creditor will release the other cosurety to the extent of the released cosurety’s pro rata share of debt liability. Both Ott and Bane agreed to act as cosureties for the full amount of the loan, $80,000. Their pro rata share of the debt was $40,000 ($80,000 / 2). Since Cread did not reserve its rights against Bane when it released Ott, Bane would only be liable for $40,000.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Author]

Replies