1|Page
MGMT 254 Final Exam | Actual Questions And
Correct Answers | Latest Update 2026/2027 (Graded
A+) | Guaranteed Success.
An insurer may cancel any contract of insurance by the insurer's unilateral act as
long as the insured gives advance written notice - Correct-answer-False
A person has an insurable interest in property is destruction of that property
would cause a monetary or pecuniary loss to that person - Correct-answer-True
It's an automobile collision results in a permanent serious disfigurement or death,
a lawsuit may be brought against the party who was at fault - Correct-answerTrue
The right to sue for damages sustained from a defective product is reversed
exclusively to the original purchaser of the product - Correct-answer-False
Bankruptcy law does not regulate the banner in which the assets of the debtor are
distributed; instead, distribution of the debtors assets is solely within the
discretion of the trustee - Correct-answer-False
,2|Page
One of the concerns reflected in Sarbanes-Oxley was the auditors were not
exercising sufficient discretion and independence in conducting audits of their
clients - Correct-answer-True
The known user role imposes liability on the accountant for malpractice when he
can foresee the parties who rely on his work in the financial statements -
Correctanswer-False
Under the____Act, Auditors are to report any fraud at the company to
management and the audit committee, and maybe eligible for____ -
Correctanswer-SOX, whistleblower awards
Arthur was an involuntary petition into bankruptcy by three of his creditors. When
the trustee reviewed Arthur's books and records, the trustee discovered the
following transactions:(A)Three weeks before the filing of the petition, Arthur paid
cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing
of the petition, Arthur paid $300 in full satisfaction of his stores most recent
,3|Page
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electric bill. The trustee is considering attempting to set aside both of these
transfers as preferential transfers. Discuss the advisability of the trustees attempt
to set aside these transfers. As to b - Correct-answer-This is a purchase for
something received earlier in the ordinary course of business and allowed
, 4|Page
Jo was told that cost is expenses of administration of the bankruptcy case,
including trustee fees are paid before any money is disbursed to secured or
unsecured creditors - Correct-answer-False
After all the creditors have been paid by the trustee, any balance is turned over to
the debt - Correct-answer-True
Under the known user rule the identity of the particular user must be known to
hold the accountant liable for malpractice - Correct-answer-False
XYZ Corporation sues Joe for bankruptcy even though Joe has said he can pay his
debt. Joe may recover damages against XYZ because XYZ filed an involuntary
bankruptcy petition against Joe in bad faith - Correct-answer-True
A member of the cleaning crew takes information from waste basket at your
county firm and then purchases stock based on that information. You threw it
away because it was bad information. This person sues you for his losses.
____Impose liability on the accountant to a total stranger who gets possession of
the accountant's work and then sustains a loss because of a false statement in the
work - Correct-answer-No courts
MGMT 254 Final Exam | Actual Questions And
Correct Answers | Latest Update 2026/2027 (Graded
A+) | Guaranteed Success.
An insurer may cancel any contract of insurance by the insurer's unilateral act as
long as the insured gives advance written notice - Correct-answer-False
A person has an insurable interest in property is destruction of that property
would cause a monetary or pecuniary loss to that person - Correct-answer-True
It's an automobile collision results in a permanent serious disfigurement or death,
a lawsuit may be brought against the party who was at fault - Correct-answerTrue
The right to sue for damages sustained from a defective product is reversed
exclusively to the original purchaser of the product - Correct-answer-False
Bankruptcy law does not regulate the banner in which the assets of the debtor are
distributed; instead, distribution of the debtors assets is solely within the
discretion of the trustee - Correct-answer-False
,2|Page
One of the concerns reflected in Sarbanes-Oxley was the auditors were not
exercising sufficient discretion and independence in conducting audits of their
clients - Correct-answer-True
The known user role imposes liability on the accountant for malpractice when he
can foresee the parties who rely on his work in the financial statements -
Correctanswer-False
Under the____Act, Auditors are to report any fraud at the company to
management and the audit committee, and maybe eligible for____ -
Correctanswer-SOX, whistleblower awards
Arthur was an involuntary petition into bankruptcy by three of his creditors. When
the trustee reviewed Arthur's books and records, the trustee discovered the
following transactions:(A)Three weeks before the filing of the petition, Arthur paid
cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing
of the petition, Arthur paid $300 in full satisfaction of his stores most recent
,3|Page
Thank you for Purchasing this exam Study
Guide. We provide high-quality academic
materials to help students excel in exams.
Our other Services include but not limited
to: academic research, University & College
assignments writing, essay writing, Online
Classes, and research projects. Our services
are reliable, affordable, and plagiarism-
free. All the Best in your Exam. For more
information; Contact us at:
or
0R +254
741484450
electric bill. The trustee is considering attempting to set aside both of these
transfers as preferential transfers. Discuss the advisability of the trustees attempt
to set aside these transfers. As to b - Correct-answer-This is a purchase for
something received earlier in the ordinary course of business and allowed
, 4|Page
Jo was told that cost is expenses of administration of the bankruptcy case,
including trustee fees are paid before any money is disbursed to secured or
unsecured creditors - Correct-answer-False
After all the creditors have been paid by the trustee, any balance is turned over to
the debt - Correct-answer-True
Under the known user rule the identity of the particular user must be known to
hold the accountant liable for malpractice - Correct-answer-False
XYZ Corporation sues Joe for bankruptcy even though Joe has said he can pay his
debt. Joe may recover damages against XYZ because XYZ filed an involuntary
bankruptcy petition against Joe in bad faith - Correct-answer-True
A member of the cleaning crew takes information from waste basket at your
county firm and then purchases stock based on that information. You threw it
away because it was bad information. This person sues you for his losses.
____Impose liability on the accountant to a total stranger who gets possession of
the accountant's work and then sustains a loss because of a false statement in the
work - Correct-answer-No courts
