Which of the Following Statements Is INCORRECT with Regard to the Weight

question 14

Multiple Choice

Which of the following statements is INCORRECT with regard to the weight of authority of tax documents?

• A) District and Circuit Court opinions have direct bearing on the taxpayer only if they were issued in the taxpayer's jurisdiction.
• B) The opinions of the Court of Federal Claims and Tax Court are not binding on a taxpayer if they were issued with respect to a taxpayer who lives in a different jurisdiction.
• C) Revenue Rulings and Revenue Procedures are frequently modified or held to be invalid by courts.
• D) Older court decisions should be given a declining degree of importance unless they are Supreme Court cases.

Understand the process of recording closing and reversing entries.

Grasp the basics of the income statement preparation and its components.

Understand the process and importance of adjusting entries in financial statements.

Calculate financial transactions using the accrual basis of accounting.

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Definitions:

Legal Action

A process of taking a dispute to a law court to obtain a legal judgment.

Tender

The act of performing a contract or the offer of payment of money due under a contract.

Doctrine Of Frustration

A legal principle that allows a contract to be discharged when an unforeseen event makes contractual obligations impossible to perform, or fundamentally changes the party’s principal purpose for entering into the contract.

Common Law

A legal system characterized by judicial decisions creating precedent, originating in England and forming the basis of legal systems in many English-speaking countries.