The U.S. Constitution created a federal government of enumerated powers, and legislation enacted by Congress must be based on a specific power the Constitution grants to the federal government or be reasonably necessary for carrying out an enumerated power

a. True
b. False
Indicate whether the statement is true or false


True

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The total likely misstatements found during the audit are equal to the sum of known and projected misstatements

a. True b. False Indicate whether the statement is true or false

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In activity-based costing, final cost allocations assign costs to

a. departments. b. processes. c. products. d. activities.

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Guidelines from Consumer Report call for posting website corrections on the site

Indicate whether the statement is true or false

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Mr. Gordon, a resident of Pennsylvania, paid $20,000 for a bond issued by Delaware. This year, he received $800 of interest on the bond. His marginal state tax rate is 7%, and under Pennsylvania law, interest on debt obligations issued by another state is taxable. Mr. Gordon can deduct state income tax on his federal return, and his marginal federal tax rate is 35%. Compute his after-tax rate of return on the bond. 

A. 3.825% B. 3.725% C. 4% D. 2.420%

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