If a CPA and non-CPA form a partnership to practice public accounting, which of the following arrangements would be permitted or required by the AICPA for such a partnership? I. A non-CPA banker who will be an owner will not be actively engaged in the practice. The banker is providing the financing to get the partnership formed and operating. II. Non-CPA owners (other than the banker) who are actively engaged as members of the firm would have to complete the same number of work-related CPE requirements as the CPA members. III. Non-CPA owners could have the title "partner." IV. None of these partnerships are permitted or required by the AICPA. I only II and III O Ill only OIV only

If a CPA and non-CPA form a partnership to practice public accounting, which of the following arrangements would be permitted or required by the AICPA for such a partnership? I. A non-CPA banker who will be an owner will not be actively engaged in the practice. The banker is providing the financing to get the partnership formed and operating. II. Non-CPA owners (other than the banker) who are actively engaged as members of the firm would have to complete the same number of work-related CPE requirements as the CPA members. III. Non-CPA owners could have the title "partner." IV. None of these partnerships are permitted or required by the AICPA. I only II and III O Ill only OIV only

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 2DQ

See similar textbooks

Similar questions

The owner of an accounting practice is considering establishing a partnership with two other persons to carry on the business. What are the major disadvantages of a partnership form that she should consider in making her decision?
For each of the following situations, indicate whether a CPA who is a partner in the one office CPA firm is "Independent" with respect to the client, by choosing "yes" or "no." Individual CPA's situation The CPA's nondependent child owns an immaterial direct financial interest in the client. b. The CPA's spouse owns an immaterial direct financial interest in the client. c. The CPA's brother is the controller of the client. d. The CPA's father is a salesman for the client. e. The CPA's nondependent mother owns an immaterial direct financial interest in the client. f. The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock worth, in total $100, in an audit client of the CPA. The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that audit engagement. h. The CPA owns an immaterial amount of stock in a firm audit client, she works on that audit engagement. 9- i. A CPA's father owns a material investment in a firm…
19. Which of the following is not an example of financial statements that use a special purpose financial reporting framework? Group of answer choices Of a partnership which follows accounting practices used to file its tax return. Prepared for limited purposes such as relating to a contract a company has entered into. Of an organization that has limited the scope of the auditor's examination. Of an organization that follows procedures of a regulatory agency that oversees the company and its operations.
If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is: Choices Is not allowed by law Is exempted from taxation as the partners are the ones liable for the tax A general professional partnership Taxable as a corporation
If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is:a. Taxable as a corporationb. Is not allowed by lawc. A general professional partnershipd. Is exempted from taxation as the partners ae the ones liable for the tax
20. The following statements are subject to your evaluation: Statement 1- A CPA and a Dentist may form a GPP or an ordinary partnership Statement 2- Partnership and Corporations have separate juridical personalities distinct from the owners, as such partners and stockholders are not liable to creditors of the business. A. True, false B. False, false C. True, true D. False, true
in a partnership liquidation , the accountant's primary responsibility is to manage the company in a manner that will ensure payment to the creditors other than partners .
Select the correct answers for the following: If ZZZ Corp., a domestic corporation registered and commenced operations in 2019, the MCIT shall apply when? a. 2021 b. 2022 c. 2023 d. 2024 If Inday, a CPA, established a partnership with Nico, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is: a. Taxable as a corporation b. Is not allowed by law c. A general professional partnership d. Is exempted from taxation as the partners ae the ones liable for the tax With the intention of limiting contact by taxpayers when dealing with the Bureau of Internal Revenue and at the same time save time and money, the Bureau allowed on-line filing of returns and other reports. This is in keeping with: a. Fiscal adequacyb. Administrative Feasibilityc. Uniformity in taxationd. Theoretical justice Professional tax collected by treasurers of LGUs is an example of:a. Privilege taxb. Direct taxc. Income taxd. Specific tax
1. A partnership is an association of three or more persons to carry on as co-owners of a business for profit. 2. The legal requirements for forming a partnership can be quite burdensome. 3. A partnership is not an entity for financial reporting purposes. 4. The net income of a partnership is taxed as a separate entity. 5. The act of any partner is binding on all other partners, even when partners perform business acts beyond the scope of their authority. 6. Each partner is personally and individually liable for all partnership liabilities. 7. When a partnership is dissolved, the assets legally revert to the original contributor. 8. In a limited partnership, one or more partners have unlimited liability and one or more partners have limited liability for the debts of the firm. Instructions Identify each statement as true or false. If false, indicate how to correct the statement.
Give the pros and cons of using partnership, corporation and any other forms in establishing own accounting firm.
A general professional partnership (GPP) is one: That derives professional income and rental income from property owned by it. That exclusively derives income from the practice of the common profession. That is composed of individuals who exercise a common profession. That is registered as such with the Securities and Exchange Commission and the Bureau ofInternal Revenue.
Choose the correct. How does partnership accounting differ from corporate accounting?a. The matching principle is not considered appropriate for partnership accounting.b. Revenues are recognized at a different time by a partnership than is appropriate for a corporation.c. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting.d. Partnerships report all assets at fair value as of the latest balance sheet date.