A CPA Prepares Tax Returns for Clients and Bills Them

question 123

Multiple Choice

A CPA prepares tax returns for clients and bills them after the work is completed.It usually takes two weeks of work to prepare the tax returns.It takes 30 days on average to receive payment from the clients.The CPA uses cash-basis accounting.The revenue should be recorded when the CPA:

• A)starts working on the tax returns.
• B)completes working on the tax returns.
• C)bills the clients.
• D)receives payments from the clients.

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Definitions:

Proximately Caused

An act or event sufficiently related to an injury that the law considers it the cause of that injury.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court against the defendant, alleging harm or a legal wrong.

Liability

Legal responsibility or obligation for actions or debts.

Raccoon

A medium-sized mammal native to North America known for its distinctive masked face and adaptability to various environments.