A corporation’s penalty for underpaying federal estimated taxes is
(A)Not deductible.
(B)Fully deductible in the year paid.
(C)Fully deductible if reasonable cause can be established for the underpayment.
(D)Partially deductible.
The Correct Answer
Explanation
The purpose of the trial balance is to:
(A)Check the solvency of the company (B)Identify credits and debits (C)Analyze the accounting period (D)Verify that credits equal debits (E)Find misclassified transactions
Correct Answer: D
GAAP refers to: Mark one answer:
(A)General accounting assistance program (B)Generally accepted accounting principles (C)Generally acceptable account procedures (D)The theory that accounting and the general public look at financial statements differently
Correct Answer: B
More CPA Exam Questions
- 1In the statement of owner’s equity, owner’s equity or capital is calculated using: Mark one answer:
- 2GAAP refers to: Mark one answer:
- 3The General Fund pays an invoice for telecommunications that includes charges owed by the Water Utility Enterprise Fund. The Enterprise Fund subsequently remits its share of the telecommunications charges to the General Fund. The General Fund records the amount received from the Enterprise Fund as:
- 4One purpose of GAAP is to provide _____ between accounting periods.
- 5If equipment is used by a corporation in its operations and is sold at a loss, under which section on the statement of cash flows is this reported? Mark one answer: