AICPA SSTS #1 Requires That a Client's Tax Return Position

question 108

Multiple Choice

AICPA SSTS #1 requires that a client's tax return position:

• A) Have a realistic possibility of being sustained if challenged by the Treasury or in the courts.
• B) Be supported by substantial authority.
• C) Agree with all pertinent IRS interpretations of the tax law.
• D) Follow all interpretations of the tax law that were reflected on the immediately prior tax year's return.

Understand the relationship between a firm's input costs (driver's wages, price of gasoline) and its operational decisions (speed of delivery).

Understand the concept of isocost lines and how shifts in isocost lines reflect changes in a firm's cost structure.

Interpret a production function and the concept of diminishing marginal returns.

Comprehend the importance of production flexibility in determining firm costs.

---

Definitions:

Freud

An influential figure in psychology, known for his theories of the unconscious mind, the mechanism of repression, and the psychoanalytic model of the mind.

Pleasure Seeking

The pursuit of activities and experiences that are expected to bring joy or satisfaction.

Id's Drives

Basic, instinctual forces or desires that seek immediate gratification, according to Freudian psychoanalytic theory.

External World

The objective reality or the physical world that exists independently of our thoughts or perceptions.