ACC 455 FINAL EXAM | VERIFIED SOLUTION

ACC 455 FINAL EXAM 1. Regulations are A. equal in authority to legislation if interpretative B. equal in authority to legislation if statutory C. equal in authority to legislation D. presumed to be valid & to have almost the same weight as the IRC 2) Identify which of the following statements is false. A. All are false. B. Members from both the House & the Senate are on the Conference Committee. C. When tax advisors speak of the tax law, they usually have in mind just the Internal Revenue Code. D. Records of committee hearings are helpful in determining Congressional intent. 3) Which of the following statements regarding proposed regulations is not correct? A. Proposed regulations do not provide any insight into the IRS's interpretation of the tax law. B. Practitioners & other interested parties may comment on proposed regulations. C. Proposed regulations expire after 3 years. D. Proposed & temporary regulations are generally issued simultaneously. 4) Which of the following statements about a partnership is true? A. Partners are considered employees of the partnership. B. Partners are taxed on distributions from a partnership. C. A partnership is a taxpaying entity. D. Partners are taxed on their allocable share of income whether it is distributed or not. 5) Which of the following is an advantage of a sole proprietorship over other business forms? A. Ease of formation B. The deduction for compensation paid to the owner C. Tax-exempt treatment of fringe benefits D. Low tax rates on dividends 6) Which of the following statements is incorrect? A. S corporation losses can offset shareholder income from other sources. B. The number of S corporation shareholders is unlimited. C. S corporations must allocate income & expenses to their shareholders based on their proportionate ownership interest. D. S corporation income is taxed to shareholders when earned.