FAC Finance and Accounting Taxation & Regulatory Compliance 2

Question 1

Under IRC Section 199A, qualified business income (QBI) deduction for pass-through entities is generally limited to what percentage?

Accepted Answer

20%

Answer

10%

Answer

25%

Answer

30%

Question 2

Which IRS form must a corporation file to report its annual income tax return?

Accepted Answer

Form 1120

Answer

Form 1040

Answer

Form 1065

Answer

Form 1099

Question 3

The FASB Accounting Standards Codification (ASC) 740 primarily addresses which accounting topic?

Accepted Answer

Income taxes

Answer

Revenue recognition

Answer

Lease accounting

Answer

Business combinations

Question 4

A company has a deferred tax liability when:

Accepted Answer

Book income exceeds taxable income, creating future taxable amounts

Answer

Taxable income exceeds book income in the current year

Answer

Tax credits exceed tax liability

Answer

The company operates at a net loss

Question 5

Under the Sarbanes-Oxley Act, Section 302 requires corporate officers to certify which of the following?

Accepted Answer

Accuracy of financial statements and disclosure controls

Answer

Quarterly dividend declarations

Answer

Annual audit committee meetings

Answer

Compensation of executive officers

Question 6

Which method of inventory valuation is NOT permitted under IFRS?

Accepted Answer

LIFO

Answer

FIFO

Answer

Weighted average cost

Answer

Specific identification

Question 7

The IRS statute of limitations for assessing additional tax on a filed return is generally:

Accepted Answer

3 years

Answer

1 year

Answer

5 years

Answer

7 years