Clyde is self-employed and has been for many years. His business receives financial information from his clients, analyzes it and makes useful reports from it. He prepares financial statements for his clients in accordance with generally accepted accounting principles so they comply with the law, but also so they can be understood and relied on by government agencies, lenders, stockholders, employees, suppliers and others who may need to access their financial information. What function is Clyde performing for his clients?
A. Financial advising
B. Auditing
C. Tax preparation
D. Accounting
Answer: D
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(CMA adapted, Dec 95 #28) Refer to the Winner Company example. Cost of goods sold for the year ended September 30, Year 5, for Winner Company is
a. $262,000 b. $252,000 c. $260,000 d. $248,000 e. $224,000
Tax-deferred retirement plans
A) are generally preferred for most individuals because they accumulate returns at a pre-tax rate. B) are no better than non-tax-deferred plans, because the taxes must eventually be paid. C) are generally preferred because they are safer, having received IRS approval. D) are only tax advantageous for those at the highest marginal tax bracket.
Continuous improvement is a philosophy that:
A) uses problem-solving techniques within work teams. B) ensures there are plenty of quality inspectors to find areas for improvement. C) waits until a big problem occurs, then systematically solves it. D) encourages the hiring of statistical process control specialists to reduce the need for current employees to learn statistical methods.
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, so they claim a total of 4 exemptions ($4,050 for each exemption). In addition, they have legitimate itemized deductions totaling $25,750. Their total income from wages is $168,100. What is the couple's taxable income? ?
A. $126,150 B. $138,750 C. $142,550 D. $103,400 E. $122,400