Which of the following is included in inventory costs?
a. Product costs.
b. Period costs.
c. Product and period costs.
d. Neither product or period costs.
Answer: a. Product costs.
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When a real estate licensee employs a non-licensee, the licensee must be careful to make sure that:
A. activities requiring a real estate license are performed only by the licensee B. the employee's activities are limited to those permitted by the Real Estate Guide to Non-licensee Activities C. the non-licensee only discusses available properties but does not negotiate with parties D. the non-licensee accepts only advance fees, rather than commissions
Mike is a CPA. Widget, Inc., is an accrual-basis taxpayer. In Year 3, while preparing Widget's Year 2 return, Mike discovered that Widget failed to include income on its Year 1 return that Widget received in Year 2 but that should have been included in income in Year 1 under the accrual method of accounting. What must Mike do?
A. Advise Widget of the error and the consequences of the error. B. Include the income on the Year 2 return. C. Refuse to prepare Widget's Year 2 return until Widget agrees to amend its Year 1 return to include the amount of income. D. Change Widget to the cash method of accounting.