Example

Question 1

The three required disclosures for risks and uncertainties are 1) The Nature of Operations, 2) the use of ____________ in preparation of the financial statements, and 3) the current ______________ due to concentrations.

Answer 1

ESTIMATES
VULNERABILITY

Question 2

True or False: The Summary of Significant Accounting Policies Summarizes the Principles and Methods chosen by management, such as inventory valuation and depreciation methods.

Answer 2

TRUE

Question 3

The Summary of Significant Accounting Policies summarizes the ____________ and ____________ chosen by management, such as inventory valuation and depreciation.

Answer 3

POLICIES
METHODS

Question 4

Can a court order someone to pay both compensatory damages AND perform the specific contract? (Specific Performance).

Answer 4

NO
Since compensatory damages are meant to be paid specifically when the contract IS NOT performed.

Question 5

Do Personal Service Corporations have to include 100% of dividends received from an unrelated taxable domestic corporation in their Gross Income to calculated unrelated ?

Answer 5

YES

Question 6

Do Personal Holding Companies have to include 100% of dividends received from an unrelated taxable domestic corporation in their Gross Income to calculated unrelated ?

Answer 6

YES