Question

Question 1 (1 point)

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Accountants are permitted to perform audit and non-audit work for publicly traded companies.

Question 1 options:

	A) True
	B) False

Question 2 (1 point)

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An accountant’s duty of care is established by a standard of care, knowledge and judgment generally accepted by members of the accounting profession.

Question 2 options:

	A) True
	B) False

Question 3 (1 point)

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A contract for the sale of goods also includes services.

Question 3 options:

	A) True
	B) False

Question 4 (1 point)

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Which of the following is not required to have a valid contract for the sale of goods?

Question 4 options:

	A) Lawyer
	B) Offer
	C) Consideration
	D) Capacity
	E) All of the above

Question 5 (1 point)

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There are two primary types of warranties, express and implied.

Question 5 options:

	A) True
	B) False

Answer 1

Q1. Answer: False

Explanation:

Accountants are prohibited from providing certain non-audit services for publicly traded companies which includes bookkeeping, financial information systems design, implementation legal services and expert services unrelated to audit etc that affects the independence of an auditor.

Q2. Answer: True

Explanation:

All professionals including accountants are governed by the contracts they enter into with their clients and in the performance of contracts they should exercise established standards of care, knowledge and judgment generally accepted by members of their professional group.

Q3. Answer: true

Explanation:

A contract for the sale of goods also includes services and the type of the contract is determined by the court through the predominant factor test which determines whether it is for the sale of goods or sale of services.

Q4. Answer: Option A; Lawyer

Explanation:

A valid contract should include agreement which includes an offer and acceptance, consideration, contractual capacity and legality. Lawyer is not required for a valid contract for the sale of goods.

Q5. Answer: True

Explanation:

A warranty is a promise that the goods will meet certain standards and there are manly two types of warranties, expressed and implied. Expressed warranty is created by the seller’s words or actions and implied warranty is the warranty that is implied in a contract for the sale of goods which ensures that the goods are fit for the purpose.