Answer:
Tax return preparers may generally rely on a client's representations without verification unless the information seems incorrect, inconsistent, or incomplete, Option A.
Explanation:
A "tax return preparer" usually relies in good faith without verification upon information furnished by a taxpayer or another advisor or third party. But he has the authority to make inquires in case he feels the information given is incomplete or inconsistent. Also, some of the provisions also require few circumstances or facts to be claimed before deduction is made. So, A tax return preparer should make relevant inquiries to decide if the information given is correct as required by an "Internal Revenue Code" section or a regulation to claim either a deduction or a credit.
Answer:
The correct answer is B
Explanation:
The contingency is the plan, which is course of action for the business that would take if an unexpected situation occur. So, the contingency plan is the plan or method which ensures that the business is prepared for what may come.
Accrual for contingency, it is the information which is available previously to issuance of the financial statements that indicates the assets has been impaired and the loss amount could be reasonably estimated.
The one which is most likely need the accrual is the customer premium offers as it is the technique of sales promotion where the customers are provided two or more products and they pay the price lower of the combined products.
Answer:
after yopu record the transaction using the double entry sysem, then you must identify the category which these balances belong to such as Assets, expenses, Liabilities, Income or Equity.
It is only after this identification we can apply these to calculate the overal financial productivity of the organization or the profit. because then we can identify the effect these balances have upon the profit!
Explanation:
I will give you a link from quizlet. Just wait..
Answer:
d. Debit Bad Debt Expense; Credit Accounts Receivable
Explanation:
This would be the entry needed to write-off this account. This is an example of the direct write-off method of accounting. This is a method that is employed to recognize bad debts expense that arises from credit sales. This method does not permit allowance account. Instead, an account receivable is written-off directly to expense after the account is determined uncollectible.
