What do policy limits of 200/300/100 on an automobile insurance policy mean?
What will be an ideal response?
Answer: $200,000 per person injured in an accident, $300,000 for all bodily injuries combined, $100,000 to cover damage to the other person's car or property.
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Which of the following contracts does NOT have to be in writing to be valid?
A) the sale of a $200,000 painting B) a third party guarantee of another person's debt C) a marriage contract D) a 4 year lease of an apartment E) all of the above must be in writing to be valid
What are the four advantages of using a data flow approach over narrative explanations of data movement?
What will be an ideal response?
Which of the following should increase the likelihood that Ms. Piper's Form 1040 will be selected for audit by the IRS?
A. Ms. Piper's AGI is $58,400, and she deducted $27,590 of charitable contributions on her Schedule A. B. Ms. Piper files as head of household because she maintains a home for her 89-year old mother who has Alzheimer's disease. C. Ms. Piper reported $10,200 alimony income from her former spouse. D. None of the above should increase the likelihood of audit.
A substantial understatement of tax liability involves which of the following?
A) understatement of tax exceeding the greater of 10% of tax required to be shown on the return or $5,000 for individuals B) underpayment of tax exceeding the greater of 15% of the tax required to be shown on the return or $5,000 for individuals C) underpayment of tax exceeding the lesser of 25% of the tax required to be shown on the return or $5,000 for individuals D) $10,000 or more difference between the amount shown on the return and the correct amount due