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CPA Reg Test questions and answers rated A+ 2024/2025
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CPA Reg Test questions and answers rated A+ 2024/2025
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CPA Reg TestB - ANSTaylor signed and mailed a letter to Peel which stated: "Ship promptly 600 dozen
grade A eggs." Taylor's offer
A. May be accepted by Peel only by a prompt shipment.
B. May be accepted by Peel either by a prompt promise to ship or prompt shipment with
notice.
C. Is invalid since the price terms were omitted.
D. Is invalid since the shipping terms were omitted.
D - ANSAllen was the surety for the payment of rent by Lear under a lease from Rosenthal
Rentals. The lease was for 2 years. A clause in the lease stated that at the expiration of the
lease, the lessee had the privilege to renew upon 30 days' prior written notice or, if the
lessee remained in possession after its expiration, it was agreed that the lease was to
continue for 2 years more. There was a default in the payment of rent during the extended
term of the lease and Rosenthal is suing Allen for the rent due based upon the guarantee.
Allen contends that he is liable only for the initial term of the lease and not for the extended
term. Allen is
A. Not liable since it does not appear that a judgment against Lear has been returned
unsatisfied.
B. Not liable because there has been a material alteration of the surety undertaking.
C. Not liable because there was a binding extension of time.
D. Liable on the surety undertaking which would include the additional 2 years.
A - ANSArticle 9 of the UCC which governs security interests has added some items that
now are covered by security interests law. Which of the following is true?
A. Security interests in tort claims already assessed by a court of law are covered.
B. After-acquired commercial tort claims are covered.
C. Both the mentioned security interests and after-acquired commercial tort claims are
covered.
D. Neither the mentioned security interests and after-acquired commercial tort claims are
covered.
C - ANSThe Martin Corporation was a small family-owned corporation whose owners were
also the directors and officers. The corporation's bankers insisted that if any further credit
were to be extended to the corporation the owners must guaranty payment by the
corporation. This guaranty was agreed to by the owners in writing, and an additional $50,000
loan was granted to Martin Corporation. Which of the following best describes the legal
significance of these events?
A. The guaranty by the owners need not have been in writing since it was primarily for their
own benefit.
, B. Once the owners agreed to the undertaking they automatically assumed responsibility for
all of the corporation's prior debts.
C. In the absence of specific provisions to the contrary, the owners are immediately liable on
the debt in the event of the corporation's default.
D. Since the owners each participated equally in the guaranty, each can be held liable by the
bank, but only to the extent of his proportionate share in relation to the others.
A - ANSMontrose sent Bilbo a written offer to sell his tract of land located in Majorsville for
$50,000. The parties were engaged in a separate dispute. The offer stated that it would be
irrevocable for 30 days if Bilbo would promise to refrain from suing Montrose during this
time. Bilbo promptly delivered a promise not to sue during the term of the offer and to forego
suit if she accepted the offer. Montrose subsequently decided that the possible suit by Bilbo
was groundless and therefore phoned Bilbo and revoked the offer 10 days after making it.
Bilbo mailed an acceptance on the 30th day. Montrose did not reply. Under the
circumstances
A. Montrose's offer was supported by consideration, and was irrevocable for the 30 day
period.
B. Bilbo's promise was accepted by Montrose by his silence.
C. Montrose's revocation, not being in writing, was invalid.
D. Montrose's written offer would be irrevocable even without consideration.
C - ANSSilvers entered into a contract which contains a substantial arithmetical error. Silvers
asserts mistake as a defense to his performance. Silvers will prevail
A. Only if the mistake was a mutual mistake.
B. Only if the error was not due to his negligence.
C. If the error was unilateral and the other party knew of it.
D. If the contract was written by the other party.
D - ANSWok Corp. has decided to expand the scope of its business. In this connection, it
contemplates engaging several agents. Which of the following agency relationships is within
the Statute of Frauds and thus should be contained in a signed writing?
A. A sales agency where the agent normally will sell goods which have a value in excess of
$500.
B. An irrevocable agency.
C. An agency which is of indefinite duration but which is terminable upon 1 months' notice.
D. An agency for the forthcoming calendar year which is entered into in mid-December of the
prior year.
B - ANSDent Corporation received a loan from Jardine Finance Company. As part of the
signed written agreement, Jardine required that one of the members of the board of directors
of Dent Corporation act as a surety for the entire loan. The loan agreement also called for
some of Dent's real estate to be used as collateral for 50% of the loan. Which of the
following is correct?
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