
ACC 499 ACC499 Final Exam Part 2
ACC 499 Final Exam Part 2
- The AICPA Principles of Professional Conduct include which of the following?
- Which one of the following is an example of a conflict of interest for a CPA?
- Which of the following represents a situation in which an auditor is independent of the client?
- In which of the following situations would a CPA not be considered independent?
- The ethical framework derived from utilitarianism and rights theories indicates all of the following steps except
- Which of the following is included in the AICPA Code of Professional Conduct?
- Normally the auditor is not permitted to divulge confidential information obtained from a client. Which of the following situations would be a violation of this requirement?
- A member of the AICPA must safeguard the confidentiality of client information. Auditors, however, must disclose information to non-clients for the following reasons except to:
- Which of the following is a preventive control?
- An accounting system that maintains an adequate audit trail is implementing which internal control procedure?
- When duties cannot be segregated, the most important internal control procedure is
- The concept of reasonable assurance suggests that
- The most cost-effective type of internal control is
- The fundamental difference between internal and external auditing is that
- Substantive tests include
- The decision to extend credit beyond the normal credit limit is an example of
- Control risk is
- Which of the following represent temporary book-tax differences?
- North, Inc., earns book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's deferred income tax asset reported on its financial statements for 2010?
- How are deferred tax liabilities and assets categorized on the balance sheet?
- Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative deferred tax asset and liability accounts with Cold, which of the following should Hot do?
- Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Paint also owns 40% of Green, Inc., a domestic corporation. Paint receives no distributions from any of these corporations. Which of these entities' net income are included in Paint's income statement for current year financial reporting purposes?
- Nocera, Inc. earns book net income before tax of $600,000 in 2010. Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $120,000. Nocera has no other temporary or permanent differences. Assuming the U.S. tax rate is 35%, what is Nocera's total income tax expense reported on its financial statements for 2010?
- Which of the following items are not included in the income tax note for a publicly traded company?
- Larson, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Larson. If the auditors determine that a valuation allowance of $30,000 must be placed against Larson's deferred tax assets, what is Larson's total book tax expense?