6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
Enrolled Agent Exam Prep - Part 2 Exam
Questions & Answers | 100% Verified solutions
(2026) UPDATE |2026!! STUDY GUIDE EXAM
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Terms in this set (56)
Which form of business entity is not a C
legal entity separate and apart from
its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
Under which circumstance is an A
entity required to apply for a new
employer identification number?
A. Proprietorship that incorporates
B. Business name change
C. Electing or revoking S corp status
D. 50% change of interest in
partnership within 12 months.
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,6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
LLC's may be an attractive small D
business alternative as opposed to
an S corp because LLC's offer the
following advantage(s) not available
in S corps:
A. Inclusion of entity-level liabilities
in tax basis
B. Pass-through taxation
C. Flexibility in types of owners and
ownership interest
D. Both inclusion of entity-level
liabilities in tax basis and flexibility in
types of owners and ownership
interests.
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,6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
A domestic LLC with at least two B
members that does not file Form
8832, Entity Classification Election, is
classified as
A. An entity disregarded as an entity
separate from its owners by applying
the rules in Regulations Section
301.7701-3
B. A partnership
C. A corporation
D. A non-entity that requires
members to report the income and
related expenses on Form 1040
Which of the following statements B
regarding accounting methods is
false?
A. If inventories are necessary, the
accrual method is used for sales and
purchases
B. A combination (hybrid) method is
not an acceptable method of
accounting
C. A change from the accrual to the
cash method of accounting requires
consent from the IRS
D. Under the cash method of
accounting, gross income includes
all items of income actually or
constructively received during the
year
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, 6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
You can compute your taxable D
income under which of the following
accounting methods?
A. Hybrid method
B. Accrual method
C. Special method for certain items
D. All of the answers are correct
Which of the following accounting A
changes do not require the filing of
Form 3115 to request a change in
accounting method?
A. Correction of a math error
B. Change from accrual method to
cash method
C. Change in the method inventory is
valued
D. Change from cash method to
accrual method
https://quizlet.com/1191060716/enrolled-agent-exam-prep-part-2-exam-questions-answers-100-verified-solutions-2026-update-2026-study-guide-exa… 4/35
Enrolled Agent Exam Prep - Part 2 Exam
Questions & Answers | 100% Verified solutions
(2026) UPDATE |2026!! STUDY GUIDE EXAM
Save Add to calendar
Terms in this set (56)
Which form of business entity is not a C
legal entity separate and apart from
its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
Under which circumstance is an A
entity required to apply for a new
employer identification number?
A. Proprietorship that incorporates
B. Business name change
C. Electing or revoking S corp status
D. 50% change of interest in
partnership within 12 months.
https://quizlet.com/1191060716/enrolled-agent-exam-prep-part-2-exam-questions-answers-100-verified-solutions-2026-update-2026-study-guide-exa… 1/35
,6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
LLC's may be an attractive small D
business alternative as opposed to
an S corp because LLC's offer the
following advantage(s) not available
in S corps:
A. Inclusion of entity-level liabilities
in tax basis
B. Pass-through taxation
C. Flexibility in types of owners and
ownership interest
D. Both inclusion of entity-level
liabilities in tax basis and flexibility in
types of owners and ownership
interests.
https://quizlet.com/1191060716/enrolled-agent-exam-prep-part-2-exam-questions-answers-100-verified-solutions-2026-update-2026-study-guide-exa… 2/35
,6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
A domestic LLC with at least two B
members that does not file Form
8832, Entity Classification Election, is
classified as
A. An entity disregarded as an entity
separate from its owners by applying
the rules in Regulations Section
301.7701-3
B. A partnership
C. A corporation
D. A non-entity that requires
members to report the income and
related expenses on Form 1040
Which of the following statements B
regarding accounting methods is
false?
A. If inventories are necessary, the
accrual method is used for sales and
purchases
B. A combination (hybrid) method is
not an acceptable method of
accounting
C. A change from the accrual to the
cash method of accounting requires
consent from the IRS
D. Under the cash method of
accounting, gross income includes
all items of income actually or
constructively received during the
year
https://quizlet.com/1191060716/enrolled-agent-exam-prep-part-2-exam-questions-answers-100-verified-solutions-2026-update-2026-study-guide-exa… 3/35
, 6/22/26, 9:01 AM Enrolled Agent Exam Prep - Part 2 Exam Questions & Answers | 100% Verified solutions (2026) UPDATE |2026!! STUDY GUIDE E…
You can compute your taxable D
income under which of the following
accounting methods?
A. Hybrid method
B. Accrual method
C. Special method for certain items
D. All of the answers are correct
Which of the following accounting A
changes do not require the filing of
Form 3115 to request a change in
accounting method?
A. Correction of a math error
B. Change from accrual method to
cash method
C. Change in the method inventory is
valued
D. Change from cash method to
accrual method
https://quizlet.com/1191060716/enrolled-agent-exam-prep-part-2-exam-questions-answers-100-verified-solutions-2026-update-2026-study-guide-exa… 4/35
