A CPA Firm May Practice Public Accounting Only in a Form

question 36

True/False

A CPA firm may practice public accounting only in a form of organization permitted by federal law or regulation.

---

Definitions:

Schedule E

A form used by the IRS for reporting income and loss from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Rental Income

Income received from allowing others the use of a property in exchange for payment, typically reported on tax returns and subject to specific rules and taxes.

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.