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.

---

Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform international sales law.

International Sales

The process of selling goods or services to customers in different countries, subject to international trade laws and agreements.

Obligations

Obligations or commitments required by law, agreement, or moral principles that one entity must fulfill towards another.

Treaty on European Union

An international agreement foundational to the European Union, detailing the cooperation and integration among EU member states.