An associated person of a broker-dealer may only share directly or indirectly in the profit or losses in a customer account if certainconditions are met. Which of these conditions do not apply in the case of an account shared with an immediate family member?A The associated person must obtain prior written approval from the broker-dealerBCDThe associated person must obtain prior written approval from the customerThe associated person must share in the profit and losses in direct proportion to financial contributions made by the associated personNone of these conditions apply in the case of an immediate family member

An associated person of a broker- dealer may only share directly or indirectly in the profit or loss…

Answered: An associated person of a broker-dealer…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17.S3: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. Only S1 is correct O Only S2 is correct O Only S3 is correct O Only S1 is incorrect O Only S2 is incorrect O All statements are incorrect Only S3 is incorrect All statements are correct
Vicarious performance is where a. a third party performs an obligation in place of another person who is ultmately liable for a proper performance b. an employee performs an obligation inplace of another employee and the performing employee is liable for proper performance c. parties to a contract enter into another agreement that has the effect of transferring the liability to perform to a third party d. an employer performs an obligation in place of its employee and is liable for proper performance e. parties to a contract agree to terminate a contract and substitute a new contract in place of the old one.
A benefit of a sole proprietorship is that liability is limited to that of the business financial and assets not the personal assets of the owner/proprietor. true or false
An individual provides accounting services to a corporation in exchange for stock. the shareholder must recognize income and the corporation may deduct or capitalize the expenditure as would be deemed appropriate. A. True B. False
How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the corporation is able to retrieve the funds?
1.) S1: Insurance service result is recognized in other comprehensive income. S2: The principle of Subrogation is the legal principle that precludes you from obtaining fire insurance on your neighbor’s house with you as the beneficiary. a. Only S1 is incorrect b. Both statements are correct c. Both statements are incorrect d. Only S1 is correct 2.) Which of the following is not one of the groupings of insurance contracts under PFRS 17? a. those that pay premiums at initial recognition which are to be measured using the simplified approach b. those that are onerous at initial recognition c. those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods d. those that are not onerous at initial recognition but can become onerous in subsequent periods 3. S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general…
Pretzel acts as a sponsor in creating a special purpose entity (SPE) that will purchase Accounts Receivable from Pretzel. Under what circumstances will Pretzel be required to treat the SPE as a variable interest entity and consolidate it as its primary beneficiary . a. Pretzel is not entitled to any profits that the SPE earns b. Pretzel agrees to reimburse SPE shareholders in the event the SPE has losses. c. Pretzel receives money from SPE for the fair value of assets that Pretzel sells to it d. Pretzel has no voting rights or ability to direct SPE activities e. The SPE has stockholders equity equal to 20% of SPE assets choose one
Statement I: If an agent acts in his name, the principal shall have a right of action against the persons with whom the agent has contracted. Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even if the principal is insolvent. Only Statement I is true. Only Statement II is true. Both statements are true. Both statements are false.
Which of the following amounts paid by an employer to an employee is not subject to withholding? Oa. Salary Ob. Travel expense reimbursements from an accountable plan Oc. Commissions UE Od. Bonus Oe. All of these choices are subject to withholding.
Owners have no personal liability under which legal business structure?
1. Which of the following is not taxable income? a.Interest b.Hobby income c.Child support payments d.Royalties e.Dividends 2. Generally, for an activity to be treated as a trade or business, which of the following is required: a.No more than intermittent effort toward the activity b.Regular and continual effort designed to seek profit c.Always generate a profit d.Organization as a corporation or partnership 3. To be deductible as the cost of special work clothing or uniforms: a.The clothing need not be required as a condition of the job, but must not be suitable for everyday use. b.The clothing must be required as a condition of the job, but can also be suitable for everyday use. c.The clothing must not be suitable for everyday use and must be required as a condition of the job. d.Only the cost of the clothing is included; upkeep is not deductible.
The investor’s interest in an associate for purposes of recognizing its share of losses of an associate is I. The carrying amount of the investment in the associate determined using the equity method. II. Any long-term interests that, in substance, form part of the entity’s net investment in the associate. choices I only. II only. Both I and II. Higher of I and II.

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