08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
Enrolled Agent Exam Prep - Part 2 exam
COMPREHENSIVE QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED ANSWERS (NEW)
2025
Save
Terms in this set (56)
Which form of business C
entity is not a legal entity
separate and apart from
its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 1/46
,08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
Under which circumstance A
is an 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.
LLC's may be an attractive D
small 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/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 2/46
,08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
A domestic LLC with at B
least two 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
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 3/46
, 08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
Which of the following B
statements 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
You can compute your D
taxable 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
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 4/46
Enrolled Agent Exam Prep - Part 2 exam
COMPREHENSIVE QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED ANSWERS (NEW)
2025
Save
Terms in this set (56)
Which form of business C
entity is not a legal entity
separate and apart from
its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 1/46
,08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
Under which circumstance A
is an 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.
LLC's may be an attractive D
small 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/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 2/46
,08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
A domestic LLC with at B
least two 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
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 3/46
, 08/08/2025, 16:33 Enrolled Agent Exam Prep - Part 2 exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED A…
Which of the following B
statements 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
You can compute your D
taxable 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
https://quizlet.com/1064607675/enrolled-agent-exam-prep-part-2-exam-comprehensive-questions-with-multiple-choices-verified-revised-answers-new… 4/46
