Question

1.	Which one of the following is not considered a self-employed person?

A. A sole proprietor.
B. A partner.
C. The president of a corporation solely owned by him.

2.	Which one of the following is a condition that requires the filing of Form 1040?

A. The taxpayer receives Social Security.
B. The taxpayer itemizes deductions.
C. The taxpayer makes a contribution to an IRA.

3.	Which one of the following statements describes the time for filing the tax return?

A. The due date is extended to the next business day when it otherwise falls on a Saturday, Sunday, or holiday.
B. The taxpayer may obtain an automatic two-month extension by filing a request with the IRS.
C. The taxpayer may obtain an additional four-month extension if reasonable cause is shown.

4.	Which one of the following is considered income under the cash method of accounting?

A. Amounts that are properly accrued by the taxpayer.
B. The amount of debt canceled by a creditor not as a gift.
C. Amounts of wages earned but not paid.

5.	Which one of the following statements describes accounting methods?

A. Almost all individuals use the cash method of accounting.
B. If an individual uses the cash method of accounting for wages and interest, that individual cannot use accrual accounting for a proprietorship reported on Schedule C.
C. An individual who uses the cash method of accounting only reports amounts actually received.

Answer 1

1. Option A is the answer. A sole proprietor.

2. Option C is the answer. If a taxpayer makes a contribution to IRA, it's necessary to file 1040 to be able to claim it.

3. Option A is the answer. If the due date falls on a holiday, then due date is extended to next business day.

4. Option A is the answer.

5. Option C is the answer.