Regarding Proper Ethical Accounting Guidelines, Which, If Any, of the Following

question 33

Multiple Choice

Regarding proper ethical accounting guidelines, which, if any, of the following is correct?

• A)The use of client estimates in preparing a return may be acceptable.
• B)Under no circumstances should a question on a tax return be left unanswered.
• C)If a client has made a mistake in a prior year's return and refuses to correct it, the accountant should withdraw from the engagement.
• D)If the exact amount of a deduction is not certain so as to increase the appearance of greater certainty.
• E)None of these.

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Definitions:

Actual Overhead

The real, incurred costs of running a production or service operation, excluding direct labor and direct materials.

Activity-Based Costing

A pricing strategy that pinpoints various tasks within a company and allocates the expenses of each task to every product and service based on their specific usage.

Overhead Rate

A calculation used to allocate indirect costs to produced goods or services, often based on labor hours, machine hours, or direct labor costs.

Cost of Services Account

An accounting category that includes all direct costs associated with the delivery of services, such as labor and materials.