Ralph's Business Records Were Lost as a Result of Hurricane

question 36

Multiple Choice

Ralph's business records were lost as a result of Hurricane Katrina. CPA Jane prepares Ralph's return using estimates. What do the Statements on Standards for Tax Services state about the use of estimates?

• A)Estimates may not be used.
• B)Estimates may be used without disclosing their use to the IRS.
• C)Estimates may be used, but Jane should disclose their use to the IRS.
• D)The Statements on Standards for Tax Services do not address the use of estimates.

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Definitions:

Self-Determination

The process by which a person controls their own life, making choices and decisions based on their own preferences and interests without undue external influence.

Autonomy

The capacity to make decisions independently and the freedom to act according to one's own will without undue influence or coercion.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Free Agents

Individuals who provide their services or work independently, often without long-term commitments to any singular employer.