Chapter 2 Homework
1. A large part of tax research consists of determining what?
- Large part of tax research includes effectiveness of tax collection with collection maximization
as well from the potential services. For example, the solution
*Listed in order going from top to bottom and left to right*
Inventory control cards
Approve and validate sales invoice
Recap sales and cash
Validated sales invoice
Review for past payments
As most processes these days are based around a cost vs. benefit principle, I
don't believe that any organization, aside from an obsure thing or two, would
invest in producing information that did not at least break even with its cost.
Purchased items, payment, cash, register tape
Collect data from the sale and payment, give data to boss
Register tape, register
It is not enough to have only one system documentation proc
It is ironic because, depending on the charcter of the employee at hand, they
can either be the greatest aid, or the greatest hinderance to security. Good
and honest employees can be a huge asset for security, but it is also usually the
7) What is the purpose of the constructive receipt doctrine?
For federal income tax purposes, the doctrine of constructive receipt is used to determine when a
cash-basis taxpayer has received gross income. A taxpayer is subject to ta
4. World War 2 converted the Federal income tax into a max tax. Explain.
The income base for filing went down and withholding was established. Also, the income tax as
we know it today existed from 1913, 28 years prior to the US entry
An annual financial report is a one-way communication device. It emphasizes clarity and conciseness, but there is often no
immediate feedback from readers about the messages they receive from it. Thus, preparers must attempt to identify the