Which of the Following Statements About the Statements on Standards

question 83

Multiple Choice

Which of the following statements about the Statements on Standards for Tax Services is true?

• A)A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
• B)The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.
• C)The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
• D)The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.

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Definitions:

Optimal Quantity

The amount of a good or service that achieves the best balance between benefits and costs, maximizing net benefits to the consumer or producer.

Optimal Allocation

Optimal allocation refers to the most efficient distribution of resources and goods in an economy, maximizing the total benefit or utility gained.

Hamburgers

A popular food item consisting of cooked ground meat, usually beef, placed inside a split bun, often served with various toppings and condiments.

Flat-Panel TVs

A type of television featuring a lightweight, thin display technology that occupies less space than traditional CRT TVs.