The ________ measures the activity, or liquidity, of a firm's stock of goods

A bank reconciliation is generally prepared by the bank and sent to the depositor along with canceled checks.

a. true b. false

To avoid tax return preparer penalties for a return's understated tax liability due to an intentional disregard of the regulations, which of the following actions must a tax preparer take?

A. Audit the taxpayer's corresponding business operations. B. Review the accuracy of the taxpayer's books and records. C. Make reasonable inquiries if the taxpayer's information is incomplete. D. Examine the taxpayer's supporting documents.