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WorksheetsCPA Refresher
Total questions: 10
Worksheet time: 10mins
Which of the following expenses should be included in general and administrative expenses?
Interest and advertising expenses
Interest expense
Advertising expenses
None of the above
Which of the following types of audit evidence is the most persuasive?
Prenumbered client purchase order forms
Client work sheets supporting cost allocations
Bank statements obtained from the client
client representation letter
An auditor who uses statistical sampling for attributes in testing internal controls should reduce the planned reliance on a prescribed control when the:
Sample rate of deviation plus the allowance for sampling risk equals the tolerable rate
Sample rate of deviation is less than the expected rate of deviation used in planning the sample
Tolerable rate less than the allowance for sampling risk exceeds the sample rate of deviation
Sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate
A NFP(not-for-profit) organization receives $150 from a donor. The donor receives two tickets to a theater show and an acknowledgement in the theater program. The tickets have a fair value of $100. What amount is recorded as contribution revenue?
$0
$50
$100
$150
In auditing long-term bonds payable, an auditor most likely would:
Perform analytical procedures on the bond premium and discount accounts
Examine documentation of assets purchased with bond proceeds for liens.
Compare interest expense with the bond payable amount for reasonableness.
Confirm the existence of individual bondholders at year-end.
Which of the following credits can result in a refund even if the individual had no income tax liability
Credit for prior year minimum tax
Elderly and permanently and totally disabled credit
Earned income credit
child and dependent care credit
Which one of the following would increase the working capital of a firm
Cash collection of accounts receivable
Refinancing of account payable with a two-year note payable
Cash payment of accounts payable
payment of a 30 year mortgage with cash.
Which of the following individuals would be most hurt by an unanticipated increase in inflation
A retiree living on a fixed income
A borrower whose debt has a fixed interest rate
A union worker whose contract includes provisions for cost of living adjustments
A saver who savings was placed in a variable rate savings account.
According to the ethical standards of the profession, which of the following acts by a CPA is generally prohibited?
Purchase a product from a third-party and reselling it to the client
Writing a financial management newsletter promoted and sold by a publishing company.
Accepting a commission for recommending a product to an audit client
accepting engagements obtained through the efforts of third parties
Ball and Baig are equal general partners in the firm of Games Associates. On January 1 of the current year, each partner's basis in their Games partnership interest was $50,000. During the year, Games borrowed $80,000, for which Ball and Baig are personally liable. Games sustained an ordinary business loss of $30,000 for the current year. The basis of each partner's interest in Games at the end of the current year is:
$35,000
$50,000
$65,000
$75,000
