[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 woman]

Sounds good! I have a feeling it will be late Sunday though. GRRR

[SullivanNJD]

3,200

2,500 to church – OK

Purchase at church bazaar: deductible in excess of FMV (800-500) = 300

400 to Charity – OK

FAR- 87
REG- 81
AUD- 88
BEC-

Who's Better Than Us? nobody

[Tax woman]

That is correct Sullivan. You are doing great…

[Tax woman]

I think I'll call it a night too…my connection is acting so crazy. Good night all!

[CPAfit]

just went through the thread and amazing test you guys! Hopefully I can join you guys today

[Anonymous]

@Tax Woman – THANK YOU for testing us last night! My connection kicked me off and wouldn't let me back on the internet until late (we had freezing rain last night) – sorry I cut out without saying anything. Let me know if anyone wants to quiz today.

[MommyBear]

I want to Bucky. I just woke up though. Best sleep I've had in two weeks. Let me wake up a bit and I will be back in 15 minutes or so to quiz.

[MommyBear]

1–Under the Sales Article of the U.C.C., which of the following statements is correct regarding the warranty of merchantability arising when there has been a sale of goods by a merchant seller?

A.The warranty must be in writing.

B.The warranty arises when the buyer relies on the seller's skill in selecting the goods purchased.

C.The warranty cannot be disclaimed.

D.The warranty arises as a matter of law when the seller ordinarily sells the goods purchased.

[CPAfit]

@mommy B. The warranty arises when the buyer relies on the seller's skill in selecting the goods purchased

[Anonymous]

I say B too. Hiya! to @zubairs for the great explanation!

[MommyBear]

It's actually D The implied warranty of merchantability applies whenever a merchant seller makes a sale. The warranty (among other things) guarantees to the buyer that the goods are fit for normal use. The warranty is implied; that is, it is not expressly made by the seller (either orally or in writing); and it arises automatically by operation of law (without requiring agreement or consent between the parties). The U.C.C. does provide a mechanism whereby this warranty can be disclaimed.

The warranty that arises when the buyer relies on the seller's skill in selecting the goods purchased is the implied warranty of fitness for a particular purpose.

[Anonymous]

Darn. Those warranties get me (almost) every time. Adding to my list.

[Anonymous]

2 – Melba is a tax client of CPA Buck. Melba is not a great record keeper, and Buck would like to save Melba some money by using estimates, rather than by incurring great expense in recovering or reconstructing original records. Which of the following is not true?

A. Buck will violate SSTS No. 4 if he fails to disclose that he has used estimates.

B. Buck will violate SSTS No. 4 if he lists Melba's estimated business expenses as $987.32.

C. Buck will violate SSTS No. 4 if he uses estimates in situations where a simple phone call to a bank could give him exact numbers.

D. Buck will violate SSTS No. 4 if he uses estimates provided by Melba that appear on their face to be materially inaccurate.

[MommyBear]

C

[CPAfit]

@bucky C

[Author]

Replies