1. Which of the following statements are true?
Revenue Rulings are accumulated in the Cumulative Bulletins.
One of the objectives of the federal tax law is to achieve equity across taxpayers.
Under the accrual method of accounting for taxes, income is recognized in the year it is actually received in cash or cash equivalent.
Under the accrual method of accounting for taxes, interest income is recognized in the year it is received.
Special interest dealings do occur in the creation of federal tax law.
2. Which of the following statements are false?
Revenue Rulings have the same legal force as tax regulations.
According to the AICPA, if a CPA discovers that a client made an error in his/her prior year tax return, the CPA should advise the client to correct the return.
Raising revenue for the federal government is the sole objective of the federal tax law.
The installment method of accounting is acceptable for tax purposes.
Proposed tax regulations have the full force and effect of law.