Test Yourself Now!
These CBT questions were taken directly from the AICPA website. Select the best answer by clicking on the corresponding letter and then read the answer explanation that appears. Make sure to click on all the answer choices for additional insight. This valuable information will help you learn from questions you answer incorrectly, or answer correctly with uncertainty.
During an engagement to review the financial statements of a nonpublic entity, an accountant becomes aware that several leases that should be capitalized are not capitalized. The accountant considers these leases to be material to the financial statements. The accountant decides to modify the standard review report because management will not capitalize the leases. Under these circumstances, the accountant should
A. Issue an adverse opinion because of the departure from GAAP.
Which of the following statements concerning the similarities between a general partnership and a corporation is correct?
A. Corporate stockholders and general partners have limited personal liability.
During the year, Jones Foundation received the following support:
At what amounts would Jones classify and record these transactions?
If a corporation’s charitable contributions exceed the limitation for deductibility in a particular year, the excess
A. is not deductible in any future or prior year.