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Q:
Small Co. uses a unique and unrecognized accounting method and will, therefore, be subject to an adverse opinion.
Q:
A disclaimer is a type of qualified opinion.
Q:
Kits wants to become a CPA and this must be approved by a vote of SEC.
Q:
Auditors may unconsciously help the organization they audit rather than the outside investors.
Q:
GAAP was created by the FASB.
Q:
A nonprofit organization, Save the Tigers, wants to contest Anna's will, since she promised to leave property to them at the annual Charity Banquet. Save the Tigers:
A. may submit evidence that Anna was of unsound mind.
B. may submit evidence that Anna was subjected to undue influence.
C. may not contest the will.
D. may not contest the will but may challenge the ownership of the property in question.
Q:
Trudy had been a constant companion of Gertrude. When Gertrude died, she left Trudy $10,000 in her will. On what basis might other heirs best attempt to challenge the $10,000 gift?
A. Undue influence
B. Unsound mind
C. Improper heir-ship
D. Improper execution
Q:
Tom and Megan die in a plane crash. After their marriage they had been jointly holding property. What happens to their property?
A. Tom's heirs inherit the whole property.
B. The state escheats the property.
C. Megan's heirs inherit the whole property.
D. The property is distributed equally between the heirs.
Q:
If Tano dies without a will, he dies:
A. testate.
B. intestate.
C. interstate.
D. testator.
Q:
Morgan, a resident of New York, had an antique car collection garaged in New Jersey. The car titles were kept in a safety deposit box of a bank in Delaware. If Morgan dies intestate, the law of which state will determine the ownership of the cars?
A. New Jersey
B. New York
C. Delaware
D. New Jersey, New York, and Delaware
Q:
Mack, the father of two children, dies intestate. Under a typical statute, the rights of his wife would include entitlement to:
A. one-half of the estate.
B. the entire estate.
C. one-half of the remainder of the estate plus $200,000.
D. no part of the estate.
Q:
The federal government's power to regulate accounting emerges from the inherent police powers found in the Fifth Amendment.
Q:
While in combat, a soldier, in front of four witnesses, made an oral will in which he distributed personal property. Such a will was:
A. a nuncupative will, which is not valid in most states.
B. a nuncupative will, which is valid in all states.
C. a valid holographic will.
D. intestate.
Q:
Dai executes a will and provides copies to all her children. Later she prepares a different will and destroys the first original will but not the copies. Has the original will been canceled?
A. No, since the copies still exist.
B. Yes, since Dai destroyed the original.
C. No, since delivering the copies prevents Dai from later changing her will.
D. Yes, since the last will is always the one probated.
Q:
Ruby's husband Caleb dies with title to the family home in his name. Caleb's creditors want to force the sale of the home to satisfy the unpaid debts. May Ruby prevent this sale?
A. Not if the debts are legitimate.
B. Yes, with homestead exemption.
C. No if the amount of debts exceeds the fair market value of the home.
D. Yes, with the forced share.
Q:
Lucy's stepfather, Zed, passed away intestate when she was 19. Zed had never adopted Lucy, but they were much closer than most fathers and daughters. As a stepdaughter,:
A. Lucy's legal rights of inheritance are the same as those of adopted children.
B. Lucy's legal rights of inheritance are the same as those of natural children.
C. Lucy has a limited right of inheritance as she was not adopted.
D. Lucy has no right of inheritance as she was not adopted.
Q:
Mathew made his will leaving his estate to his only son, Andrew. Two years later, he felt inclined to leave $100,000 toward a new old age home under construction in his locality. Mathew may make this bequest:
A. by executing a codicil.
B. by adding the bequest to the original will and initialing it.
C. by writing the bequest on a separate sheet and affixing it to the original.
D. by executing a durable power of attorney.
Q:
Carl has his lawyer prepare his will. Wanting to make a few minor changes, Carl places some handwritten words in the margins, initials them, and scratches out words in the typed text. These changes:
A. create a codicil.
B. create a new will.
C. amend the typed will.
D. are ineffective.
Q:
When a trust is established, legal and beneficial titles remain with the trustee.
Q:
A sprinkling trust has a built-in spendthrift provision.
Q:
Grandmother Smith is concerned about having an incapacitating illness that will prevent her from managing her finances. Grandmother Smith should execute a(n):
A. power of attorney.
B. advance directive.
C. agency proxy.
D. durable power of attorney.
Q:
Chandra is an invalid and therefore she cannot put her signature on her will. Her friend Nina signs the will for her. When Nina signs on behalf of Chandra there is no one else in the house. Is the will valid?
A. Yes, since Chandra was present during the time the will was signed.
B. No, since she did not date it.
C. Yes, since she is presumed to be mentally competent.
D. No, since there were no witnesses present during the signing of the will.
Q:
Darius wrote a will leaving his property in equal shares "to all my friends." which he dated and signed. Is the will valid?
A. Yes, since the document expresses Darius' intent.
B. No, since the will itself is ambiguous.
C. Yes, since he has dated and signed it.
D. No, since there is a numerical limit to the number of legal heirs.
Q:
Stepchildren are given the same legal rights under estate law as natural children.
Q:
A codicil is considered invalid if it does not refer to the existing will to which it applies.
Q:
While examining allegations of "undue influence" the court treats kindliness and undue influence as one and the same.
Q:
If the deceased dies without a will and is survived by no issue and no blood relatives, the surviving spouse is entitled to the entire estate.
Q:
In case of simultaneous death of husband and wife property owned jointly by both of the deceaseds is distributed equally between the heirs.
Q:
A living will typically authorizes an agent to make medical treatment decisions for another.
Q:
Carolyn signs a handwritten will without witnesses. Such a will is called a holographic will.
Q:
Nuncupative wills exclude giving of personal property.
Q:
A surviving spouse is legally bound to accept the amount provided in the will even if he does not like the provisions of the deceased spouse's will.
Q:
Children who can prove that they were mistakenly (rather than intentionally) left out of a parent's will receive the same share that they would have received had their parents died without a will.
Q:
Parents are legally obligated to leave their property to their children.
Q:
Jared is physically unable to sign his will. So another person may sign for him.
Q:
If Allan is a witness to his wife Cindy's will, Allan may not be able to inherit under Cindy's will unless there are other witnesses.
Q:
All probate rules are determined by federal law.
Q:
Joseph and Susan are partners. If Susan dies, her death will impact their partnership.
Q:
A devisee receives real property under a will.
Q:
The issue of soundness of mind is raised only when someone contests a will on that ground.
Q:
A will may be typewritten and must be under seal.
Q:
Brad and Sally, a married couple, died at the same time in a tornado in a state that has adopted the Uniform Simultaneous Death Act. Brad's will left his property to Sally and then to his children if she were to die before him. Sally's will left her property to Brad and then to charity. Discuss the distribution of their property.
Q:
Fritz is having his will prepared and also wants to prepare other advance directives. Discuss the typical advance directives and why they are prepared.
Q:
Teresa is concerned that her children will waste their inheritance and owe many creditors who will take any unspent inheritance. Discuss how Teresa may allow the children to inherit and yet prevent her fears from becoming reality.
Q:
Santos created an irrevocable living trust for her stepdaughter. In her later years, she became angry with her stepdaughter and sought to rescind the trust. Will she be able to do so? Explain.
Q:
John liked the language of his grandfather's will and made a copy of it, and handwrote in some changes to names and dates and signed this copy in the presence of witnesses. Discuss if John's will is valid.
Q:
Whitney signs her will and then realizes that she needs witnesses. She finds two friends, tells them the signature is hers and the two friends sign the document. Discuss if this method is valid.
Q:
Amos was divorced and dying in Mercy Hospital when he executed his will in the presence of his mother, daughter and two nurses, all of whom signed as witnesses. The will left all of Amos' property to his mother and daughter and left nothing to Amos' son. The son challenged the validity of Amos' will. Discuss the legal issues.
Q:
Colleen disinherited her husband Glen and left her entire estate to her church. Glen desires to challenge this distribution. Discuss Glen's likely success.
Q:
Gracie was a single mother of ten children, of whom three were adopted, and two were stepchildren. One day, Gracie was struck by a car and killed. She died intestate. Will all her children inherit from her? Explain.
Q:
Forty year-old Kelsey, a homeowner with a wife and two children, made out his will the day he was institutionalized for alcohol abuse. When he drew up the will, Kelsey was experiencing severe withdrawal symptoms, including impaired memory, insomnia, and tremors. Describe how a court would evaluate whether Kelsey was of sound mind when he made out his will.
Q:
Due to a severely cold winter, the city's water mains connected to Mountain Apartments froze and broke leaving Mountain tenants without water or heat from the Mountain boiler. Discuss what liability, if any, Mountain has to the tenants.
Q:
Pepe dies without a will leaving a brother, a cousin, and an uncle as his only surviving relatives. Who is the "next of kin"?
A. The uncle
B. The cousin
C. The brother
D. This must be determined by the state law where Pepe died.
Q:
Frisco and his wife Esperanza were killed simultaneously in an auto accident. Frisco had life insurance naming Esperanza as the beneficiary. Frisco's will left all his property to a charity, and Esperanza's will left all of her property to her mother, Verdad. Who is entitled to the insurance proceeds under the Uniform Simultaneous Death Act?
A. Verdad.
B. No one since Esperanza is deceased.
C. This is determined by intestate succession.
D. The charity.
Q:
In states that have not adopted the Uniform Probate Code, the person named in a will to carry out the terms in it is called a(n):
A. administrator or administratrix.
B. executor or executrix.
C. settler.
D. testator or testatrix.
Q:
A trust that is created by a will is called a(n):
A. conveyance in trust.
B. declaration of trust.
C. inter-vivos trust.
D. testamentary trust.
Q:
Charles creates a revocable living trust. What are the typical advantages of creating a revocable living trust?
A. Estate tax advantages
B. Management advantages
C. Both estate and income tax advantages
D. Management advantages as well as estate and income tax advantages
Q:
Starting in 1985, Helena drives across Giant Ranch to cut twenty miles off the trip from her land to the nearest public road. Giant Ranch does not object to this until Helena protests the environmental policies of Giant Ranch. Giant then fences off the path that Helena drives and Helena protests this in a suit. Discuss the likely result of this case.
Q:
Charles, a healthy twenty five year old, owns a life estate in ten acres of land on the edge of a growing city. Developers would like to purchase the ten acres but the holder of the remainder interest, Doria, does not want to sell. Discuss what rights, if any, the developers may acquire.
Q:
Uta, Piper, and Hoku own 1,000 acres of land as tenants in common. Part of the land borders an interstate highway, another part borders a farm-to-market road, and part is scarred with deep erosion and gullies. The three want to divide the land into separate parcels for each of them but cannot agree. Discuss how a court will resolve the problem.
Q:
Ariel and Titus own adjoining tracts of land divided by a fence that has been in place since 1978. In order to obtain a bank loan Ariel has a survey made of his land and discovers that the fence is twenty feet off the property line. Ariel and Titus cannot agree to move the fence and end up in litigation. Discuss the likely result of the suit.
Q:
At the end of her two-year lease, Margo remained in her apartment and continued to pay her landlord rent every month, which he accepted. One day, Margo received a letter from her landlord accusing her of creating a tenancy at sufferance and threatening immediate eviction. Was the landlord acting within his rights? Explain.
Q:
Jackson sells his farmland. A dispute has arisen about whether or not the following items are included in the sale. The contract is silent concerning the following items: a growing cotton crop, a tractor, an irrigation pump that can be unbolted by disconnecting two pipes, and a tool shed, that sits upon concrete blocks on top of the ground. Discuss each of these and decide if they are included in the sale of the farmland.
Q:
Martin flew her ultra light airplane 200 feet above the surface of a vacant lot owned by Jacobs. When Jacobs complained, Martin claimed that she was flying in navigable airspace. Was Martin correct? Explain.
Q:
Brad is a riparian owner in a state that follows the riparian rights doctrine. Brad believes that he owns the soil beneath the stream that flows through his land and that he has the right to bottle and sell, in a new business venture, the water in the stream. Does Brad have the right to do so? Why or why not?
Q:
Zolotas told his landlord that he wanted to make some improvements to the house he was renting from her. He installed recessed ceiling lights and had bookshelves custom made to attach to and fit beneath the main staircase. When Zolotas moved out, he removed the shelves and the ceiling lights. Did he have a legal right to do so? Why or why not?
Q:
A lease agreement may give the tenant which, if any, of the following rights?
A. Right to rent control.
B. Right to a security deposit.
C. Right to renew or purchase.
D. Neither the right to renew or purchase.
Q:
Laura has a tenancy at will apartment rental agreement with Management Apartments. When Management sells the apartment complex where Laura lives, what is the legal status of Laura's apartment rental agreement in most states?
A. The rental agreement ends.
B. Laura could sue Management Apartments for selling the apartment without her consent.
C. It continues if Laura gives written notice to both the old and new owners of her desire to continue it.
D. It ends only if it had existed for less than one year.
Q:
Iago has a tenancy for years apartment rental agreement with Ranch Apartments. When the agreement ends in March, Iago asserts a right to renew while Ranch states that the rental agreement ended without notice. Which party is correct?
A. Iago, since there is an implied renewal right.
B. Ranch, since no statute requires a party to give notice when ending a lease.
C. Iago, since the tenancy for years must at least continue until the end of the calendar year.
D. Ranch, since the tenancy for years automatically terminates on the expiration of the stated term.
Q:
Maria has a periodic tenancy with Apartment Enterprises in which rent is paid every two months. She informs Apartment Enterprises one month before she moves but Apartment insists that it is entitled to two months' notice. Who is correct?
A. Maria, because one month is reasonable notice.
B. Apartment, because at least one payment period is required.
C. Maria, because in a periodic tenancy no notice is required to end it.
D. Apartment, because two months is the typical statutory notice required.
Q:
What is the legal status of an apartment lease?
A. It is a special type of deed.
B. It is a special type of trust agreement.
C. It is a contract.
D. It is an executed contract.
Q:
Robert is interested in leasing Bill's property. Robert must include all of the following essentials into the lease agreement, except:
A. a definite agreement as to the extent and bounds of the leased property.
B. a definite and agreed term.
C. a definite agreement about the purchase options of the property.
D. a definite and agreed price of rental and manner of payment.
Q:
In tenancy by the entirety:
A. a husband and wife share entire control over the estate and share the right to all rents and profits.
B. only a husband may have entire control over the estate and have the exclusive right to possession and the right to all rents and profits.
C. a husband and wife are regarded, in law, as separate individuals.
D. an execution by a judgment resulting from an action against a husband or wife alone may be placed against the entire property.
Q:
Jack and Jill live in a community property state. Jill works full time and Jack stays home taking care of their children. What is the legal status of the earnings Jill makes that are used to purchase a new home?
A. Owned by Jill.
B. Owned by Jill subject to a one third interest Jack has.
C. Jointly owned by Jack and Jill.
D. Owned by Jill, Jack, and the children.
Q:
A deed becomes effective when:
A. it is recorded in the public records.
B. the signatures are acknowledged.
C. it is delivered to the grantee.
D. it is prepared and signed by the grantor.
Q:
Oya dies and by will names Pinson the personal representative of his estate. Pinson decides to sell Oya's house to Tse. This is accomplished by:
A. the probate court records.
B. the decree of the probate court judge.
C. the sworn statement of Pinson.
D. a license issued by the court.
Q:
Abbot Vending Co. has a license to install vending machines at the Slumber Apartment Complex. Can Abbot transfer this right to Zeno Concession Co.?
A. Yes, if Zeno provides identical services.
B. No, since the license is a personal privilege.
C. Yes, if their agreement gives ownership interest in the property.
D. No, since it is a possessory estate.
Q:
Erin, an American student, boarded with a family while she studied in France for two months. The family gave Erin her own room and bathroom and fed her breakfast and dinner every day. Erin was a:
A. tenant.
B. direct owner.
C. lodger.
D. subletter.
Q:
Lydian owns a small island outright. She is said to have a(n):
A. estate in fee simple.
B. leasehold estate.
C. life estate.
D. reversion estate.
Q:
In a tenancy in common the tenants:
A. take title at the same time.
B. cannot transfer their share to their heirs.
C. have equal interests in the property.
D. have equal right to possess the property.