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expenses existed. In connection with Stone’s preparation of
Pym’s 2012 return, Stone is
• Question 12 The Ultramares decision is a leading case that helps
define when a CPA is liable to different parties. If a CPA has
committed negligence, under this decision the CPA is liable to
which of the following parties?
• Question 13 Clark, a professional tax return preparer, prepared
and signed a client’s 2012 federal income tax return that resulted
in a $600 refund. Which one of the following statements is correct
with regard to an Internal Revenue Code penalty Clark may be
subject to for endorsing and cashing the client’s refund check?
• Question 14 Jay, CPA, gave an unqualified opinion on Nast
Power Co.’s financial statements. Larkin bought Nast bonds in a
public offering subject to the Securities Act of 1933. The
registration statement filed with the SEC included Nast’s
financial statements. Larkin sued Jay for misstatements
contained in the financial statements under the provisions of
Section 11 of the Securities Act of 1933. To prevail, Larkin must
prove
• Question 15 The Joint Ethics Enforcement Program involves
joint enforcement of the ethics rules of
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ACC 544 Quiz 3
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ACC 544 Quiz 3
• Question 1 Which of the following statements about
investment decision models is true?
• Question 2 Which of the following events would decrease the
internal rate of return of a proposed asset purchase?