The Use of Secondary Authorities Might Be Appropriate as Part

question 75

Multiple Choice

The use of secondary authorities might be appropriate as part of which step in the research process?

• A) Understand the client's transaction and ascertain the facts
• B) Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions
• C) Locate relevant tax law authority
• D) Document your research and communicate your conclusions

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Definitions:

Money

A medium of exchange that facilitates the transfer of goods and services and serves as a measure of value and a store of wealth.

Interest

The cost of borrowing money or the payment received for the lending of resources, typically expressed as a percentage rate over a period of time.

Present Value Analysis

The process of determining the present worth of a future stream of cash flows by applying a discount rate to account for the time value of money.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.