A digital signature provides: A digital signature provides: A. Confidentiality only B. Authentication and non-repudiation C. Virus protection D. Data compression Answer: B Explanation: Digital signatu

Working capital equals: Working capital equals: A. Current assets − current liabilities B. Total assets − total liabilities C. Cash − short-term debt D. Equity − noncurrent ass

Which expenses are deductible for a C corporation Which expenses are deductible for a C corporation? A. Ordinary and necessary business expenses B. Reasonable officer salaries C. Dividends paid to sha

For corporate federal income tax, charitable contribution deduction limit is generally For corporate federal income tax, charitable contribution deduction limit is generally: A. 10% of taxable income

Which is an example of application control? Which is an example of application control? A. Firewall at network perimeter B. Check digit validation on customer account numbers C. Separation of duties i

Which control category ensures that only authorized users can access system data Which control category ensures that only authorized users can access system data? A. Access control B. Output control C

Which of the following is a capital budgeting cash inflow Which of the following is a capital budgeting cash inflow? A. Initial purchase price of machine B. Salvage value of equipment at project end C

In ratio analysis, return on equity (ROE) formula In ratio analysis, return on equity (ROE) formula: A. Net income / average total assets B. Net income / average common equity C. Sales / total assets

Which taxes are imposed at federal level in US Which taxes are imposed at federal level in US? A. Federal income tax B. Federal payroll (FICA) tax C. Real property tax D. State sales tax Answer: A, B

A CPA violates AICPA Code of Professional Conduct if: A CPA violates AICPA Code of Professional Conduct if: A. Accepts contingent fee for tax preparation B. Discloses confidential client information w

Under contract law, consideration requires: Under contract law, consideration requires: A. A gift promise B. Bargained-for exchange of legal detriment C. Notarized contract D. Written contract Answer:

What is the statute of limitations for IRS assessment of tax return with substantial understatement of income What is the statute of limitations for IRS assessment of tax return with substantial under

Which entity provides limited liability to all owners and is a pass-through for federal income tax Which entity provides limited liability to all owners and is a pass-through for federal income tax? A

Which items are deductible for AGI on individual tax return Which items are deductible for AGI on individual tax return? A. Student loan interest B. Trade or business expenses of a self-employed perso

Under UCC Article 2 Sales, a merchant’s firm offer: Under UCC Article 2 Sales, a merchant’s firm offer: A. May be revoked any time before acceptance B. Is irrevocable for the time stated,

Which of the following is a requirement to form a general partnership Which of the following is a requirement to form a general partnership? A. Written formal partnership agreement required by law B.

A taxpayer sells a capital asset and realizes a capital loss. For individual tax A taxpayer sells a capital asset and realizes a capital loss. For individual tax, net capital loss deduction limit agai

For individual federal income tax, what is the tax treatment of ordinary dividends For individual federal income tax, what is the tax treatment of ordinary dividends? A. Always tax-exempt B. Taxed at

Which accounts are closed at year-end Multi-select (choose two): Which accounts are closed at year-end? A. Sales revenue B. Rent expense C. Accounts receivable D. Common stock Answer: A, B Explanation

Which of the following is a period cost? Which of the following is a period cost? A. Factory raw material B. Factory machine depreciation C. Sales commission D. Direct labor Answer: C Explanation: Sal

Noncontrolling interest (NCI) in consolidated financial statements is classified as: Noncontrolling interest (NCI) in consolidated financial statements is classified as: A. Liability B. Equity C. Asse

Under US GAAP, development costs for internal-use software are: Under US GAAP, development costs for internal-use software are: A. Expensed as incurred B. Capitalized once technological feasibility is

Treasury stock purchased by a corporation is recorded as: Treasury stock purchased by a corporation is recorded as: A. Asset on balance sheet B. Contra-equity account C. Liability D. Investment income

A contingent loss is accrued when: A contingent loss is accrued when: A. Loss is remote B. Loss is reasonably possible C. Loss is probable and estimable D. Loss is possible but cannot estimate amount

Which items are cash flows from operating activities Which items are cash flows from operating activities? A. Cash received from customers B. Cash paid for employee salaries C. Cash paid to purchase e