A corporation’s penalty for underpaying federal estimated taxes is
(B)Fully deductible in the year paid.
(C)Fully deductible if reasonable cause can be established for the underpayment.
The purchase of treasury stock would be shown under which section on the statement of cash flows? Mark one answer:
(A)Operating (B)Investing (C)Financing (D)Supplemental (E)It is not reported on the statement of cash flows.
Correct Answer: C
The statement of cash flow reports are used for the following: (I)Investing activities(I) Financing activities(I)I Operating activities(I) Supplemental activities Mark one answer:
(A)I (B)II (C)III (D)I, II, and III (E)I, II, III, and IV
Correct Answer: E
The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be
(A)The firm that proposes the lowest fee for the work required. (B)Independent for purposes of examining financial information required to be filed annually with the DOL. (C)Included on the list of firms approved by the DOL. (D)Independent of the utility company and NOT relying on its services.
Correct Answer: B
More CPA Exam Questions
- 1Which of the following transactions have a negative impact on cash? Mark one answer:
- 2The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be
- 3Common stock has a _____ balance and is a/an _____ to the Corporation.
- 4Another name for an income statement is a: Mark one answer:
- 5Jim's Jeans is being sued by a former employee for $100,000. The employee is claiming age discrimination. She is twenty-four and was terminated when Jim decided that he wanted all employees to be over the age of sixty-five. Jim's attorney has told him that the employee has a strong case and will probably win. How does this impact Jim's accounting records? Mark one answer: