Chapters
43 & 50
TRUE/FALSE.
Write 'T' if the statement is true and 'F' if the statement is false.
1) An accountant is liable for constructive fraud when
the accountant acts with a reckless disregard for his actions.
2) The term privity refers to parties being in a
contractual relationship with one another.
3) The Civil Rights Act of 1964 prohibits discrimination
on the basis of race in housing sales and rental.
4) A landlord who fails to provide electricity to his
tenants has constructively evicted them.
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers
the question.
5) An accountant's failure to follow generally accepted
auditing standards in conducting an audit generally amounts to:
A) falsification.
B) promissory
estoppel.
C) reliance.
D) negligence.
E) fraud.
6) The procedure that an accountant performs to determine
whether the financial statements of a business are materially accurate is a(n):
A) verification.
B) review.
C) compilation.
D) account sampling.
E) audit.
7) If an auditor determines that the financial statements
do not fairly present the financial results and position of the client, the
auditor would issue a(n):
A) qualified opinion.
B) unqualified
opinion.
C) disclaimer of
opinion. D) adverse
opinion.
8) Which of the following is true about the general
standard of care owed by an accountant to the client?
A) It varies
considerably depending on the sophistication of the accountant.
B) It varies
considerably depending on the geographic region of the nation.
C) It varies
considerably depending on the sophistication of the client.
D) both A and B
E) It is generally
the same in all parts of the nation for similar circumstances.
9) The state law rule of liability of accountants for
negligence to third parties that is most favorable the accountant is:
A) the Ultramares
doctrine.
B) the strict
liability standard.
C) the Restatement
(Second) of Torts standard.
D) the foreseeability
standard.
10) The landlord has the right to enter the leased
premises:
A) to inspect for
waste.
B) only if
specifically provided in the lease.
C) to make necessary
repairs.
D) to inspect for
illegal use.
E) B and C only
11) After being constructively evicted, which of the
following remedies can a tenant usually obtain?
A) damages, and
possession of the premises
B) termination of the
lease
C) punitive damages
D) A and B only
E) all of the above
12) Which of the following is true regarding the Americans
with Disabilities Act requirements for landlords?
A) Only the attorney
general can enforce the Act against a landlord.
B) New construction
must be made accessible to persons with disabilities.
C) In order to not
discourage renovations of older buildings, alterations to existing buildings do
not need to comply with the Act.
D) New construction
must obtain a certificate of accessibility from the EEOC.
E) All existing
buildings must be brought into compliance by 2005.
13) The courts of many states recognize that leased,
residential premises must be fit, safe, and suitable for ordinary residential
use. This rule is called:
A) the warranty of
quiet enjoyment.
B) the warranty to
maintain the premises.
C) the warranty of
habitability.
D) the warranty of
suitability.
E) the warranty
against private nuisance.
14) Where the implied warranty of habitability has been
breached, the tenant can do the following except:
A) repair the problem
and deduct the cost of repair from the rent.
B) require the
landlord to provide alternative equivalent premises.
C) withhold from rent
the reduction in value caused by the breach.
D) cancel the lease
if the breach amounts to constructive eviction.
15) Which of the following is not generally a duty owed by the tenant to a landlord?
A) duty to pay rent
B) duty to not use
the premises for illegal purposes
C) duty to not commit
waste
D) duty to inform
landlord of any condition affecting the value of the leased premises
E) duty to not
disturb other tenants
TRUE/FALSE.
Write 'T' if the statement is true and 'F' if the statement is false.
1) TRUE
Diff: 1Page Ref: 843
2) TRUE
Diff: 1Page Ref: 845
3) TRUE
Diff: 1Page Ref: 989
4) TRUE
Diff: 1Page Ref: 989
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers
the question.
5) D
Diff: 1Page Ref: 843
6) E
Diff: 1Page Ref: 842
7) D
Diff: 2Page Ref: 843
8) E
Diff: 2Page Ref: 843
9) A
Diff: 2Page Ref: 845
10) B
Diff: 2Page Ref: 989
11) D
Diff: 2Page Ref: 989
12) B
Diff: 2Page Ref: 990
13) C
Diff: 2Page Ref: 990
14) B
Diff: 2Page Ref: 991
15) D
Diff: 2Page Ref: 993