Which of the following statements about the Statements on Standards for Tax Services is true?
A) A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
B) The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.
C) The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
D) The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.
C) The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
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Which of the following statements is true?
a. Salaried employees are always exempt from FLSA, but wage earners are not; b. An independent contractor is an employee of more than one company; c. To determine the hourly rate of a salaried employee, it is necessary to annualize the monthly salary first; d. A withholding allowance determines the amount to be withheld for FICA; e. When accounting for wages, the Wages and Salaries Expense account should be debited for the net pay
KFC and Pizza Hut are examples of distributorship
Indicate whether the statement is true or false
In evaluating the adequacy of the allowance for doubtful accounts, an auditor is most likely to review the aging of receivables as evidence and support for management's financial statement assertion of ________.
A) existence or occurrence B) rights and obligations C) completeness D) valuation or allocation
While reconciling the checking account, the accountant noticed that an error had been made in recording a check received by the company. The bookkeeper had recorded the receipt as $729 but the correct amount of the check was $279. Which of the following reconciling adjustments is necessary?
A. Add $450 to the company's records. B. Deduct $450 from the company's records. C. Add $450 to the bank statement balance. D. Deduct $450 from the bank statement balance.