7 HOUR USPAP EXAM WITH CORRECT ANSWERS GRADED A+

7 HOUR USPAP EXAM WITH CORRECT ANSWERS GRADED A+ All of the following are fiduciary accounts EXCEPT: A) TOD accounts. B) trust accounts. C) estate accounts. D) guardian accounts. - CORRECT ANWERS-A) TOD accounts. Transfer on Death Accounts (TOD) are individual accounts with a designatedbeneficiary to receive account assets upon the death of the account owner. If a writer of an XYZ equity call option is assigned, which of the following should bedelivered to the OCC? A) Cash equal to the market value of the underlying XYZ security B) Any listed security of comparable value to XYZ C) Rights or warrants exercisable to purchase the underlying XYZ security D) The underlying XYZ security - CORRECT ANWERS-D)The underlying XYZ security When a call is exercised, that specific security must be delivered by the assigned writer.The option contract does not allow for exercise settlement in cash, securities of equivalent value, or securities exercisable to purchase the underlying securities such asrights or warrants. In analyzing the ability of a company to meet its debt obligations but not wanting tochance that certain accounting decisions or practices will cloud the picture, one measure that you might look at is the firm's A) net worth found on the firm's balance sheet B) earnings before interest, taxes, depreciation, and amortization (EBITDA), calculatedfrom the firm's income statement C) price-to-earnings (P/E) ratio D) cash flow found on a cash flow statement - CORRECT ANWERS-B) earnings before interest, taxes, depreciation, and amortization (EBITDA), calculatedfrom the firm's income statement Earnings before interest, taxes, depreciation, and amortization (EBITDA), calculated from the firm's income statement, is a metric that measures the ability of a company torepay debt obligations (interest and principal), eliminating accounting decisions and techniques that might not allow for the best assessment. The principal tax benefit of investing in an exploratory oil and gas drilling program isderived from: A) intangible drilling costs. B) capital appreciation. C) recaptur e. D) depreciation expenses. - CORRECT ANWERS-A)intangible drilling costs. Intangible drilling costs (IDCs), which are a significant portion of all drilling costs, are a major tax advantage to a limited partner and are tax deductible in the year in which theyare incurred. IDCs are costs that, after incurred, hold no salvage or ongoing value. Examples are labor and geological survey. A new customer has given you written authorization to transfer the holdings in his account at another broker/dealer to his new account at your broker/dealer. Under the Uniform Practice Code, using the automated customer account transfer system form (ACATS) the carrying broker/dealer would have how many days to validate the positionsand how many days to complete the transfer after validation? 1 business day to validate. 2 business days to validate. 2 business days to transfer after validation. 3 business days to transfer after validation. - CORRECT ANWERS-D)I and IV. Under the Uniform Practice Code the carrying broker/dealer has 1 business day to validate positions and 3 business days to transfer to the