Which of the following is not an objective of the auditor's examination of notes payable?
A) to determine whether internal controls are adequate
B) to determine whether client's financing arrangements are effective and efficient
C) to determine whether transactions regarding the principal and interest of notes are properly authorized
D) to determine whether the liability for notes and related interest expense and accrued liabilities are properly stated
B
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Mary has a contract to buy Jena's house. The contract says that Mary's obligation to go through with the purchase is contingent upon Mary selling the house she currently owns. An additional clause in the contract makes Mary's purchase contingent on the seller's landscaping the front yard "to Mary's satisfaction." Can Mary reject the contract based on dissatisfaction with the landscaping?
a. Yes, if her dissatisfaction is actual, honest and in good faith. b. No, this is an illusory condition and Mary is bound to the contract. c. No, if an average, reasonable person would be satisfied with the landscaping Mary is bound to the contract. d. No, if the landscaping meets the estoppel standard Mary is bound to the contract.
The purpose of a recording act is to:
a. ensure title is marketable b. raise revenue c. create a local public record d. protect property owners