CPA Liam discovers that last year's Form 1120 for his client PollCo claimed a $100,000 advertising deduction for a gift to candidates of the Green Party. AICPA tax ethics rules require that an amended return immediately be filed, as political expenditures are not deductible
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The CPA should advise the client (not the IRS) of the error.
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Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform these tasks, is
A. supply chain management. B. offshoring. C. outsourcing. D. subcontracting.
Which of the following represents the minimum legal financial obligation of a common stockholder if a firm is liquidated and additional funds are needed to repay its debt?
A. The redemption value of the common stock B. The par value of the common stock C. The earnings per share of the common stock D. The interest obligation per share of the common stock E. The market value per share of the common stock
The Council of Europe is an EU institution
Indicate whether the statement is true or false
Suppose that ABSs are created from portfolios of subprime mortgages with the following allocation of the principal to tranches: senior 80%, mezzanine 10%, and equity 10%
(The portfolios of subprime mortgages have the same default rates.) An ABS CDO is then created from the mezzanine tranches with the same allocation of principal. Losses on the mortgage portfolio prove to be 16%. What, as a percent of tranche principal, are losses on the senior tranche of the ABS CDO A. 50% B. 60% C. 80% D. 100%