Compiled Financial Statements of a Nonpublic Entity Should Be Accompanied

question 96

Multiple Choice

Compiled financial statements of a nonpublic entity should be accompanied by a report stating that

• A) The scope of the accountant's procedures has not been restricted in testing the financial information that is the representation of management.
• B) The accountant assessed the accounting principles used and significant estimates made by management.
• C) The accountant does not express an opinion or any other form of assurance on the financial statements.
• D) A compilation consists primarily of inquiries of entity personnel and analytical procedures applied to financial data.

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Definitions:

Alimony

Payments made to a spouse or ex-spouse under a divorce or separation agreement, which may be tax-deductible for the payer and taxable income for the recipient.

Distance Test

Specifically related to moving expense deductions, it's the requirement that a new job location must be a certain minimum distance further from the taxpayer's old home than the old job location was.

Moving Expense Deductions

Tax deductions that were available for taxpayers to deduct certain expenses related to moving for a job, although largely suspended since 2018 for non-military taxpayers.

HSA

Health Savings Account; a savings account that allows individuals to set aside money pre-tax for medical expenses.