Cpa Becker Quiz Q&a

3390 Words14 Pages
Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board has provided the accompanying explanations. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams. 2006 AICPA Newly-Released Regulation Questions - 1 - Under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), which of the following statements is(are) correct regarding employee rights? I. Employers are required to establish either a contributory or noncontributory employee pension plan. II. Employers are required to include employees as pension-plan managers. a. I only. b. II only. c. Both I and II. d. Neither I nor II. ANSWER: Choice "d" is correct. The Employment Retirement Income Security Act (ERISA) does not require employers to have retirement plans or require contributions to existing retirement plans. ERISA does not mandate that employers are required to include employees as pension-plan managers. ERISA does establish standards for funding and investing and imposes fiduciary duties on pension fund managers. Only choice "d" reflects that employers are not required to establish a pension plan and employees do not need to be included as pension-plan managers. 2006 AICPA Newly-Released Regulation Questions - 2 - The Rites are married, file a joint income tax return, and qualify to itemize their deductions in the current year. Their adjusted gross income for the year was $55,000, and during the year they paid the following taxes: Real estate tax on personal residence $2,000 Ad valorem tax on personal automobile 500 Current-year state and city income taxes withheld from paycheck 1,000 What total amount of

More about Cpa Becker Quiz Q&a

Open Document