(CPA) Regulation Flashcards
7 cards from real Certified Public Accountant practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 (CPA) Regulation flashcards as text
Which of the following is NOT a requirement for a valid Chapter 7 bankruptcy petition under the means test?
Answer: Debtor must have no prior bankruptcies
A prior bankruptcy does not automatically disqualify a debtor from Chapter 7; prior filings only affect eligibility for discharge timing.
An S corporation has $100,000 of ordinary income. Shareholder A owns 30% of shares. What amount flows through to Shareholder A?
Answer: $30,000
S corporation income is allocated to shareholders based on their pro-rata percentage of stock ownership.
Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is a permissible 'facilitating payment'?
Answer: Paying a low-level official to expedite routine permit processing
The FCPA permits facilitating payments made to foreign officials to expedite or secure performance of routine non-discretionary governmental actions.
A taxpayer has net operating loss (NOL) carryforward provisions under post-TCJA rules. Which statement is correct?
Answer: NOLs can only be carried forward indefinitely but limited to 80% of taxable income
Post-TCJA, NOLs generated after 2017 cannot be carried back (generally) but can be carried forward indefinitely, limited to 80% of taxable income.
Which element is NOT required to establish negligence in a tort claim against a CPA?
Answer: Intent to deceive
Negligence does not require intent; the four elements are duty, breach, causation, and damages.
A married couple files jointly and has $400,000 in net investment income. What is the Net Investment Income Tax (NIIT) rate?
Answer: 3.8%
The Net Investment Income Tax is imposed at a rate of 3.8% on the lesser of net investment income or the excess of MAGI over the threshold.
Under UCC Article 2, when does risk of loss pass to the buyer in a shipment contract (FOB shipping point)?
Answer: When the seller delivers goods to the carrier
In a shipment contract (FOB shipping point), risk of loss passes to the buyer when the seller delivers goods to the carrier.