CA Taxation & Regulatory Compliance

Question 1

What is the purpose of regulatory compliance in accounting?

Accepted Answer

Follow legal requirements

Answer

Improve company image

Answer

Increase profits

Answer

Speed up operations

Question 2

Which organization regulates tax laws in the United States?

Accepted Answer

IRS

Answer

FASB

Answer

SEC

Answer

PCAOB

Question 3

What type of tax is withheld from employee wages?

Accepted Answer

Payroll tax

Answer

Sales tax

Answer

Property tax

Answer

Capital gains tax

Question 4

What does tax avoidance refer to?

Accepted Answer

Legal tax planning

Answer

Illegal tax evasion

Answer

Failure to file

Answer

Unreported income

Question 5

Which tax form is used to report individual income in the U.S.?

Accepted Answer

1040

Answer

W-2

Answer

1099

Answer

1120

Question 6

What does GAAP ensure?

Accepted Answer

Accounting consistency

Answer

Tax breaks

Answer

Marketing compliance

Answer

Import/export regulations

Question 7

What is the penalty for non-compliance with tax regulations?

Accepted Answer

Fines and legal action

Answer

Bonus points

Answer

Discounts

Answer

Free filing

Question 8

Which act combats corporate fraud and enforces compliance?

Accepted Answer

Sarbanes-Oxley Act

Answer

Tax Reform Act

Answer

Freedom of Information Act

Answer

Fair Labor Standards Act

Question 9

What is the purpose of a W-2 form?

Accepted Answer

Summarize payroll information

Answer

Report investments

Answer

Track inventory

Answer

Claim deductions