Practice Quiz

CPA Accountant Review Questions - Question List

Select how would you like to study

Study Mode Free Daily Question Test Mode
76. If an underpayment of tax liability is established, then the fine imposed is based on:
  1. The amount of tax left unpaid
  2. The entire tax liability is considered for such purposes
  3. The underpayment of tax
  4. One-fourth of the amount underpaid
See answer
77. Tax fraud cases are difficult to unearth because:
  1. It involves money
  2. It takes much time to settle the case
  3. It is difficult to prove and establish the essence of tax evasion and fraud
  4. Court is too busy with other criminal cases
See answer
78. The difference between tax avoidance and tax evasion is:
  1. Tax avoidance is permissible by law, whereas, tax evasion is a crime
  2. Tax avoidance is punishable, whereas, tax evasion is allowed
  3. Tax avoidance is manipulation of laws, whereas, tax evasion is lawful
  4. Tax avoidance at a larger level refers to tax evasion
See answer
79. Jim’s Jeans is located in Florida and hopes to tap into the spending of the state’s retired population. Jim’s Jeans pays a tax rate of 35% and their income before taxes and extraordinary items was $400,000. If Jim’s Jeans suffered a tax-deductible extraordinary loss of $100,000, what is their net income?
  1. $185,000
  2. $105,000
  3. $260,000
  4. $300,000
  5. $195,000
See answer

Select how would you like to study

Study Mode Free Daily Question Test Mode