OC4418051

If the auditors' report discloses deficiencies in internal control, fraud, illegal acts, violations of provisions of contracts or grant agreements, or abuse, the auditors should:

a.Notify the federal department designated as the cognizant agency

b.Notify all federal agencies the funds of which were subject to the violations

c.Include in the notes to the financial statements a schedule detailing the violations and indicating their impact on the financial statements

d.Obtain and report the views of responsible officials concerning the findings

The statement of stockholders' equity:

a. is used only if a corporation frequently issues commonstock.

b. is one of the required financial statements for the annualreport, when changes have occurred in the stockholders' equityaccounts.

c. shows the changes in retained earnings for the period, whichincludes the increase or decrease as a result of net income or lossfor the period, and dividends for the period.

d. includes accounts, such as the retained earnings and commonstock accounts, but not changes to the retained earnings account,since those items are reported on the statement of retainedearnings.

A reduction of a partner's share of partnership liabilities will have what effect on the partner's basis in the partnership interest?

a.There is no effect on partnership basis.

b.The same result (basis reduction and/or gain recognition) as if the partner received a distribution of that same amount of cash.

c.A reduction of the partner's basis by the amount of the partner's share of liability reduction, without regard to the amount of the partner's basis before the liability share reduction.

d.An increase in the partner's basis by the amount of the partner's share of liability reduction, without regard to the amount of the partner's basis before the liability share reduction.

The expenses of a decedent's final illness may be deducted on?

a. Schedule K of Form 706

b. Schedule A of Form 1041

c. form 1041 in lieu of form 706

d. Either schedule K of form 706 or the decedent's final income tax return.

Which of the following statements is not true regarding the Futures Market Clearinghouse?

a)Guarantees both sides of a futures contract

b) It is owned and capitalized by the U.S. government

c) It guarantees the quality of the goods delivered

d) It eliminates counterparty credit risk

e) It acts as a banker, transferring funds from the loser's account to the winner's account

when categorizng the product and service you sell on sales forms,like invoces:

a. you have to use your item list

b. you have to use your chart of accounts

c. you have to use either accounts or items

d. you don't use invoices to sell products and services

d.you don't use invoces to sell products and service

No modification for nonbusiness deductions is made on a NOL as long as:

A) The NOL is carried forward to a future year.

B) Real estate tax paid is the only deduction shown on the return.

C) The taxpayer uses the standard deduction.

D) Nonbusiness income plus excess nonbusiness capital gains exceed nonbusiness deductions.

Partnership and S corporation returns:

A) Carry their NOLs back ten years.

B) Do not carry NOLs back or forward.

C) Have a choice of carrying their NOLs back three, four, or five years instend of the default two years.

D) Carry forward their NOLs 15 years.

Which of the following statements is true regarding the filingof a gift tax return?

A. Spouses using thegift-splitting provision do not have to file a return unless thegifts exceed $28,000.

B. A gift tax return must befiled when a gift to a church exceeds the annual exclusion.

C. A gift tax return is duewithin five months of making the gift.

D. No gift tax return is requiredto be filed for gifts between spouses.

The term used to describe how much a product sold contributes toincome over and above its variable cost is:

A) Gross Margin

B) contribution margin

c) gross profit

D) gross contribution

E) gross sales

On a variable costing income statement, the difference betweensales and variable cost of goods sold is called:

Select one:

a. gross margin.

b. contribution margin.

c. profit margin.

d. manufacturing margin.

Under the full-cost approach to oil and gas accounting:

Which of the following is not a current liability?

a. Accounts payable.

b. A note payable due in 2 years.

c. Current portion of long-term debt.

d. Sales tax payable.

Which of the following is an accurate statement about qualified pension and profit sharing plans?

a. A plan that is or becomes top-heavy will cease to be qualified until certain corrections are made.

b. In a plan that is integrated with Social Security, the combination of the two benefits will produce a greater proportionate benefit for higher-paid employees than for lower-paid employees.

c. An employer can make contributions to a profit sharing plan in a year in which it has no profits.

d. The amount an employer may contribute to a qualified plan varies, depending on the number of employees and their years of service.

In order to qualify for income tax deductions, a CRAT must:

a. Designate a fixed amount or fixed percentage of the initial value of the trust as payable to the charitable beneficiary.

b. Designate that the annuity percentage must be not less than 5 percent nor more than 55 percent of the initial fair market value of all property transferred in trust.

c. Designate that the annuity amount be paid at least annually out of trust income only.

d. Designate that the entire remainder interest be paid to charity.

Which of the following is a correct statement as to 401(k) plans?

a. An employee who has completed a specified number of years of participation, as provided in the plan, may receive a distribution of funds from the plan which are attributable to elective deferrals.

b. An employee's right to other employee benefits may be conditioned on his participation in the employer's 401(k) plan.

c. A 401(k) plan must specify whether contributions will be received by employees in cash or contributed on their behalf to an account.

d. A 401(k) plan is subject to the minimum age and service, coverage, participation, and vesting requirements that are applicable to qualified plans.

Which document is created during the initiation phase of a project? (Points : 5)

A.)The scope

B.) The project schedule

C.)The project charter

D.) The project communication plan

Which of the following apply to closely held corporations? a. there is no organized market for buying and selling the company's shares b. the company must prepare and issue its financial statements in conformity with generally accepted accounting principles c. the company must have its financial statements audited by an independent firm of CPAs d. the company's financial information must be submitted to the Securities and Exchange Commission

A major shortcoming of the direct write-off method is that credit losses are:

Select one:

A. Not shown in the subsidiary ledger

B. Not matched with sales

C. Sometimes collected at a future date

D. Never recognized

13. Which of the following controls is most likely to be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?

A) Employees responsible for authorizing sales and bad debt write-offs are denied access to cash.

B) Shipping documents and sales invoices are matched by an employee who does not have authority to write off bad debts.

C) Employees involved in the credit-granting function are separated from the sales function.

D) Subsidiary accounts receivable records are reconciled to the control account

by an employee independent of the authorization of credit.

WHY?

Under the allowance method of accounting for credit losses, theentry to write off a specific account: Select one: A. Will increasetotal assets B. Debits Bad Debts Expense and credits Allowance forUncollectible Accounts C. Is the same as the entry to write off aspecific account under the direct write-off method D. Does notaffect net income or total assets

All of the following are features of managerial accountingexcept:

A) information is provided primarily to insiders such asmanagers.

B) information includes economic and non-financial data as wellas financial data.

C) information is characterized by objectivity, reliability,consistency, and accuracy.

D) information is reported continuously with a present or futureorientation.

Using a a perpetual inventory system, the seller’s journal entry to record the payment for merchandise, received from the buyer, within the discount period includes a:

Select one:

A. Debit to Accounts Receivable

B. Credit to Sales Discounts

C. Debit to Cost of Goods Sold

D. Debit to Sales Discounts

The statement of retained earnings:a.Reports how retained earnings changes at a point in timeb. Reports how retained earnings changes over a period of timec. Reports on cash flows for operating, financing and investing activities over a period of timed. Reports on cash flows for operating, financing and investing activities at a point in timee. Reports on amounts for assets, liabilities and equity at a point in time

3. Which of the following statements are incorrect?

A) A balance sheet reports on investing and financing activities.

B) An income statement reports on financing activities.

C) The statement of equity reports on changes in the accounts that make up equity.

D) The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time.

E) All of the statements are correct.

Which of the follwing is true of spouses who have made the election to operate as a QJV (Qualified Joint Venture)?

A) They must use the MFS filing status.

B) They may combine their income on a joint Schedule C.

C) Each files their own Schedule C and their own Schedule SE.

D) They may jointly deduct the expenses of the business.

Nonrecapture Sec.1231 losses are applied againt the net Sec. 1231 gain beginning with:

A) Last year's loss and ending with losses from fifth previous year.

B) The earliest loss in the five-year period.

C) The next future year's losses.

D) Last year's loss and ending with losses from the third previous year.

Which of the following is considered a disadvantage ofdecentralization?

A. Decentralization does not foster managerial expertise sinceupper level managers manage less.

B. Decentralization does not empowerupper-level managers to focus on strategy because they are too busymanaging lower-level managers.

C. Upper-level managers with more knowledge about lower-levelmanagers' areas of responsibility are further away from theday-to-day decisions.

D. Lower-level managers may have an opportunity to makedecisions in their own best interest without considering theoverall health of the company.

When dealing with deferred taxes, which of the following does not need to be disclosed in a company’s financial statements?

I. The nature and amount of each type of operating loss and tax credit carryforward.
II. The types and amount of existing temporary differences.
III. The types and amounts of existing permanent differences.

a. I, II, and III
b. I and II only
c. III only
d. I only

The actuarial gains or losses that result from changes in the projected benefit obligation are derived from

Asset Liability

Gains & Losses Gains & Losses

a. Yes Yes

b. No No

c. Yes No

d. No Yes

The fair value of pension plan assets is used to determine the corridor and to calculate the expected return on plan assets.

Expected Return

Corridor on Plan Assets

a. Yes Yes

b. Yes No

c. No Yes

d. No No

Which of the following items should be included in pension expense calculated by an employer who sponsors a defined-benefit pension plan for its employees?

Amortization of

Fair value prior

of plan assets service cost

a. Yes Yes

b. Yes No

c. No Yes

d. No No

When using a flexible budget, what will happen to variable costs ona per-unit basis as production increases within the relevantrange?

a. decrease
b. increase
c. remain unchanged
d. fixed costs are not considered in flexible budgeting

Which of the following is most likely to obtain large amounts of resources by issuing stock?

a.proprietorship

b.partnership

c.government entity

d.corporation

Select the type of business that is most likely to obtain largeamounts of resources by issuing stock.

Which department is usually responsible for a labor pricevariance attributable to misallocation of workers?

Select one:

a. Quality control

b. Purchasing

c. Engineering

d. Production

which department is typically responsible for setting materialcost standards?

a) accounting b) quality control c) purchasing d)production

Which department is often responsible for the direct materials price variance?

a. The accounting department

b. The purchasing department

c. The production department

d. The finance department

e. The budgeting department