CPA EXAM REG QUESTIONS & CORRECT
ANSWERS LATEST UPDATE 2024/2025 100%
CORRECT
According to Treasury Circular 230, which of the following rules related to the prompt
disposition of pending matters before the IRS applies to CPAs?
A) Practitioners may request an extension of time of NOT more than five years related to
the dispostion of matters pending before the IRS to avoid any preparer penalties.
B) Practitioners will be held responsible for any of the client's interest and penalties
related to the unreasonable delay of matters pending before the IRS.
C) Practitioners may NOT unreasonably delay the prompt disposition of matters
pending before the IRS.
D) Practitioners must ensure that matters are concluded within three years of the date
of formal notification concerning any matters pending before the IRS.
Ans>> C) Practitioners may NOT unreasonably delay the prompt disposition of matters
pending before the IRS.
Which of the following situations could result in a preparer penalty assessed by the IRS?
1
,A) Preparer does NOT sign the tax return.
B) Preparer inadvertently transposes two digits on a return, and the error results in an
understatement of income by $90.
C) Preparer takes an aggressive but realistic tax position that results in a decrease of tax.
D) Taxpayer tells the preparer that the taxpayer's income is $40,000, whereas it is
actually $60,000
Ans>> A) Preparer does NOT sign the tax return.1
Under the Internal Revenue Code, a CPA who was engaged in the business of preparing
tax returns could incur a penalty for disclosing taxpayer information without the
taxpayer's formal consent in which of the following circumstances?
A) The information was disclosed in the client's state and local tax returns that the CPA
prepared.
B) The information was disclosed in the client's electronically filed tax return.
C) The information was disclosed pursuant to an attorney's solicitation request.
2
,D) The information was disclosed pursuant to a court order.
Ans>> C) The information was disclosed pursuant to an attorney's solicitation request.
Which of the following events will always terminate an agent's apparent authority?
A) The principal's death.
B) The principal revoking the relationship.
C) The agent's renunciation of the relationship.
D) Both the principal and agent agree to terminate the relationship.
Ans>> A) The principal's death.
Which of the following contracts is governed by the Sales Article of the UCC?
A) A sale of stock on the stock exchange.
B) Construction of a house by a professional builder.
3
, C) A sale of a used car by a nonmerchant.
D) A sale of an acre of land by a real estate agent.
Ans>> C) A sale of a used car by a nonmerchant.
Two CPAs organized their business as a general partnership. Which of the following
advantages may have played a role in their selection of the general partnership form
under the Revised Uniform Partnership Act?
A) The partnership form of business organization allowed them to form their business
without the requirement of filing organizational documents with a government agency.
B) The partners' risk of loss from the business is limited to the amount of capital each
invested in the business.
C) The partnership has a perpetual life that is NOT affected by a partner's expulsion or
withdrawal.
D) The partnership can raise capital with sale of common stock.
4
ANSWERS LATEST UPDATE 2024/2025 100%
CORRECT
According to Treasury Circular 230, which of the following rules related to the prompt
disposition of pending matters before the IRS applies to CPAs?
A) Practitioners may request an extension of time of NOT more than five years related to
the dispostion of matters pending before the IRS to avoid any preparer penalties.
B) Practitioners will be held responsible for any of the client's interest and penalties
related to the unreasonable delay of matters pending before the IRS.
C) Practitioners may NOT unreasonably delay the prompt disposition of matters
pending before the IRS.
D) Practitioners must ensure that matters are concluded within three years of the date
of formal notification concerning any matters pending before the IRS.
Ans>> C) Practitioners may NOT unreasonably delay the prompt disposition of matters
pending before the IRS.
Which of the following situations could result in a preparer penalty assessed by the IRS?
1
,A) Preparer does NOT sign the tax return.
B) Preparer inadvertently transposes two digits on a return, and the error results in an
understatement of income by $90.
C) Preparer takes an aggressive but realistic tax position that results in a decrease of tax.
D) Taxpayer tells the preparer that the taxpayer's income is $40,000, whereas it is
actually $60,000
Ans>> A) Preparer does NOT sign the tax return.1
Under the Internal Revenue Code, a CPA who was engaged in the business of preparing
tax returns could incur a penalty for disclosing taxpayer information without the
taxpayer's formal consent in which of the following circumstances?
A) The information was disclosed in the client's state and local tax returns that the CPA
prepared.
B) The information was disclosed in the client's electronically filed tax return.
C) The information was disclosed pursuant to an attorney's solicitation request.
2
,D) The information was disclosed pursuant to a court order.
Ans>> C) The information was disclosed pursuant to an attorney's solicitation request.
Which of the following events will always terminate an agent's apparent authority?
A) The principal's death.
B) The principal revoking the relationship.
C) The agent's renunciation of the relationship.
D) Both the principal and agent agree to terminate the relationship.
Ans>> A) The principal's death.
Which of the following contracts is governed by the Sales Article of the UCC?
A) A sale of stock on the stock exchange.
B) Construction of a house by a professional builder.
3
, C) A sale of a used car by a nonmerchant.
D) A sale of an acre of land by a real estate agent.
Ans>> C) A sale of a used car by a nonmerchant.
Two CPAs organized their business as a general partnership. Which of the following
advantages may have played a role in their selection of the general partnership form
under the Revised Uniform Partnership Act?
A) The partnership form of business organization allowed them to form their business
without the requirement of filing organizational documents with a government agency.
B) The partners' risk of loss from the business is limited to the amount of capital each
invested in the business.
C) The partnership has a perpetual life that is NOT affected by a partner's expulsion or
withdrawal.
D) The partnership can raise capital with sale of common stock.
4
