FRK History
What year was FRK&CO founded?
1964
The Internal Revenue Code and the Regulations do not impose penalties on tax return preparers for which of the following?
1. Failure to sign a prepared tax return as a tax preparer.
2. Failure to provide a copy of a prepared tax return to the taxpayer.
3. Failure to notify a taxpayer about an inadvertent error on a tax return filed 10 years ago.
4. Failure to retain copies of prepared tax returns or a list of taxpayers for whom such returns were prepared for the last three years.
3. Failure to notify a taxpayer about an inadvertent error on a tax return filed 10 years ago.
Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?
1. Fictitious transactions may be recorded that cause an understatement of revenues and an overstatement of receivables.
2. Claims received from customers for goods returned may be intentionally recorded in other customers' accounts.
3. Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.
4. The failure to prepare shipping documents may cause an overstatement of inventory balances.
3. Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.
How many miles is Beltway 8?
88 miles
Spinach is high in which mineral?
Iron
How many offices do we currently have?
3
A spouse died on December 31, year 1. The couple had no dependents. What should be the filing status of the surviving spouse in year 2?
1. Single.
2. Married filing jointly.
3. Qualifying widow(er).
4. Head of household.
1. Single.
A CPA has been requested by a former audit client to reissue the auditor's report for the prior period. Before reissuing the report, the CPA should
1. Obtain a letter of representation from the former client's management.
2. Make inquiries of the former client's attorney regarding pending litigation.
3. Review the former client's records to verify its compliance with debt and loan agreements.
4. Consider whether there is substantial doubt about the former client's ability to continue as a going concern.
1. Obtain a letter of representation from the former client's management.
Who is our city named after?
Sam Houston
What is a Geiger Counter used to detect?
Radiation.
How many birthdays do we have this month? July 2019
2
On May 1 of the prior year, Baker purchased equipment with a five-year useful life for a cost of $10,000. Baker adopted the MACRS depreciation system and did not utilize any special depreciation deductions. On March 1 of the current year, Baker sold the equipment. The MACRS depreciation schedule for five-year property is listed below:
First year - 20.00%
Second year - 32.00% Third year - 19.20%
What amount of depreciation can Baker deduct in the current year?
$ 533
$1,600
$2,000
$3,200
$1,600
Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatements arising from fraudulent financial reporting?
1. The entity's industry is experiencing declining customer demand.
2. Employees who handle cash receipts are not bonded.
3. Bank reconciliations usually include in-transit deposits.
4. Equipment is often sold at a loss before being fully depreciated.
1. The entity's industry is experiencing declining customer demand.
What month does the Houston rodeo take place?
March
In the film Babe, what type of animal was Babe?
A pig
What floor was the training room in 2012?
7th floor
Greene is the sole shareholder of Seagull, a calendar-year S corporation. Greene's basis at the beginning of the year is $15,000. Seagull reported an ordinary loss of $5,000 and $2,000 of municipal bond interest for the year. Seagull distributed cash of $6,000 to Greene on November 1. What is Greene's basis in Seagull at the end of the year?
$4,000
$6,000
$14,000
$15,000
$6,000
An entity prepares its financial statements on its income tax basis. The accompanying notes include a summary of significant accounting policies that discusses the basis of presentation and describes how that basis differs from GAAP. The dollar amount of the effects of the difference between the income tax basis and GAAP
1. Is required to be included only in the auditor's report.
2. Is required to be included only in the notes to the financial statements.
3. Is required to be included both in the notes to the financial statements and the auditor's report.
4. Need not be quantified and included in either the notes to the financial statements or the auditor's report.
4. Need not be quantified and included in either the notes to the financial statements or the auditor's report.
Before they were the Astros, what was Houston's Major League Baseball team name?
Colt .45s
Translate "2019" into roman numerals
MMXIX
How many conference rooms do we have in the Galleria office? (excluding the board room)
Under a divorce settlement, Joan transferred her 50% ownership of their personal residence to Jim. The joint basis of the residence was $200,000. At the time of the transfer, the property's fair market value was $300,000. What was Joan's recognized gain and Jim's basis for the residence?
Recognized gain Basis
$50,000 $250,000
$50,000 $300,000
$0 $200,000
$0 $300,000
$0 $200,000
Which of the following events most likely would indicate the existence of related party transactions?
1. Insuring the lives of key executives and listing the entity as beneficiary.
2. Selling real estate at a price that differs significantly from its appraised value.
3. Making a loan with specific scheduled terms for repayment of the funds.
4. Granting stock options to key executives at favorable prices.
What year was Houston founded?
1837
What is the chemical symbol for iron?
Fe