Practice Quiz

CompTIA PDI+ Exam Prep - Question List

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16. Mark is an accrual basis taxpayer. He shipped $500 worth of merchandise to Ralph on December 30, 2004. Mark sent Ralph an invoice January 2, 2005 that was payable in 30 days. Ralph mailed his check to Mark on February 2, 2005. Mark deposited the check on February 6, 2005. Mark received and reconciled his bank statement March 3, 2005. When does Mark record the $500 in income?
  1. January 2, 2005 because that is when he invoiced Ralph
  2. March 3, 2005 because that is when Mark verified that the $500 check had been accepted as a deposit
  3. December 30, 2004, the date when he shipped the merchandise to Ralph
  4. February 6, 2005 because that is when Mark deposited the check from Ralph
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17. Which of the following items are generally included in inventory?
  1. Goods for sale that someone else has consigned
    to you
  2. Equipment used in your business to manufacture
    goods
  3. Goods you have sent out on consignment for
    someone else to sell
  4. Goods in transit to you for which title has not yet
    passed to you
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18. Supplemental wages are compensation paid in addition to an employee’s regular wages. They do not include payments for:
  1. Accumulated sick leave
  2. Nondeductible moving expenses
  3. Vacation pay
  4. Travel reimbursements paid at the Federal Government per diem rate
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19. Which of the following fringe benefits for meals is subject to the 50% deduction limit?
  1. Meals furnished to your employees at the work site when you operate a restaurant
  2. Meals furnished to your employees as part of the expense of a company picnic
  3. Meals furnished to your employees at your place of business when more than half of these employees are provided the meals for your convenience
  4. Meals furnished to a customer during a business discussion
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20. Esther works as a computer programmer for a marketing firm. She performs 40% of her computer programming on a home computer during the weekend (her company is closed on the weekends) so she can take off 2 days during the regular work week. The home computer that Esther works on is identical to the computer she uses at work, and she uses it exclusively for her job related duties. Esther’s employer does not require Esther to take work home with her on the weekends-it is Esther’s choice. Because she uses the home computer exclusively for business purposes, she can use the following percentage of business usage when computing her yearly depreciation for the computer:
  1. 100%
  2. 40%.
  3. 25%.
  4. 0%.
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