[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

[taxman89]

yeah i hope i get that Q….just thought it was weird…no clue on 21…a?….was going to go a or c :p

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[MommyBear]

21 is B

Under the Uniform Commercial Code (U.C.C.), a warehouseman, as the bailee under common law, must exercise due care—that is, ordinary care in the storage of the bailor's goods. Extraordinary care and strict liability for all harm to the bailed goods are not required of the warehouseman. However, when the warehouseman fails to exercise due care (ordinary care), he is liable because he was negligent.

[MommyBear]

22-Which of the following actions does not discharge a prior party to a commercial instrument?

A.

Good faith payment or satisfaction of the instrument

B.

Cancellation of that prior party's indorsement

C.

The holder's oral renunciation of that prior party's liability

D.

The holder's intentional destruction of the instrument

[WANNABE_CPA]

22.D ?

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

[MommyBear]

The answer is C. The way I discounted D as an option was to think about if I write you a check and you rip it up then I am no longer liable for the payment to you. You can't come back later and ask for the payment.

The holder's oral renunciation of that prior party's liability does not discharge a prior party to a commercial instrument. One way to arrive at this correct answer is through process of elimination:

Good faith payment or satisfaction of the instrument does discharge a prior party to the instrument.

Cancellation of that prior party's indorsement does discharge a prior party to the instrument.

A holder's intentional destruction of the instrument does end all liability.

[MommyBear]

23-Under the Negotiable Instruments Article of the U.C.C., which of the following circumstances would prevent a promissory note from being negotiable?

A.

An extension clause that allows the maker to elect to extend the time for payment to a date specified in the note

B.

An acceleration clause that allows the holder to move up the maturity date of the note in the event of default

C.

A person having power of attorney signs the note on behalf of the maker

D.

A clause that allows the maker to satisfy the note by the performance of services or the payment of money

[taxman89]

B?

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[WANNABE_CPA]

thanks mommybear…that was a good explanation..i will remember this

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

[MommyBear]

For 23, I guessed B too, but it is actually D

One of the essential requirements of a negotiable instrument is that it must be payable only in money. If there is a clause in the instrument allowing the maker to satisfy the obligation by performing services rather than paying money, then the instrument is nonnegotiable.

[WANNABE_CPA]

23.D ?

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

[MommyBear]

24–Under the U.C.C. Secured Transactions Article, which of the following after-acquired property may be attached to a security agreement given to a secured lender?

A. Both inventory and equipment

B. Inventory only

C. Equipment only

D. Neither inventory nor equipment

[MommyBear]

23 was D. Good job!!

[WANNABE_CPA]

24.A?

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

[MommyBear]

24 is A! You are doing great wannabe!

Revised U.C.C. Article 9 covers security interests that are created in personal property. Personal property includes that which is both tangible and intangible. Tangible property includes consumer goods, equipment, farm products, and inventory.

[MommyBear]

25-On May 2, Lace Corp., an appliance wholesaler, offered to sell appliances worth $3,000 to Parco, Inc., a household appliances retailer. The offer was signed by Lace's president, and provided that it would not be withdrawn before June 1. It also included the shipping terms: “FOB—Parco's warehouse.” On May 29, Parco mailed an acceptance of Lace's offer. Lace received the acceptance June 2.

Risk of loss for the appliances will pass to Parco when they are:

A.

identified to the contract.

B.

shipped by Lace.

C.

tendered at Parco's warehouse.

D.

accepted by Parco.

[Author]

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