Tennessee CPA Journal Self-Study CPE Exam

Sponsored by the Educational & Memorial Foundation of the Tennessee Society of CPAs
Recommended CPE Credit: 1 hour

Issue Date: March 2009
Exam valid through October 1, 2009.
Must be postmarked on or
before October 1, 2009.

If you are not a member of TSCPA, please send a check for $20 payable to the Educational & Memorial Foundation of TSCPA.

If you have not taken this exam before or have questions, please read the Instructions.

This form will be sent to TSCPA electronically and you will receive your graded exam via e-mail. Please click here if you intend to mail or fax the exam to TSCPA. Click here for help.

True

False

From "The Subprime Mortgage Debacle: A Tax Issue"
1. Before the amendment, debt discharge income was excluded from gross income if the discharge occurred in a case under Title 11.
2. All of the discharged debt income will be applied first against the "qualifying" loan, leading to an exclusion.
3. Reducing basis in your home and increasing the gain on the sale of your home generates an increased amount of income. However, Congress previously decided to exclude gain from the sale of a qualified personal residence.
4. Debt discharge income will never be "phantom" income. It will always be untaxable income.
From "Communicating Internal Control-Related Matters in SAS No. 115"

5. One change with SAS No. 115 was that communications of internal control related matters to management and those charged with governance were allowed to be communicated verbally, whereas SAS No. 60 required them to be communicated in writing.

6. The term "reportable condition" was eliminated and the terms "significant deficiency" and "material weakness" were used to describe control deficiencies that must be communicated to management and those charged with governance with SAS No. 115.

7. A deficiency in internal controls exists when the design or operation of a control does not allow management or employees to prevent, or detect and correct misstatements on a timely basis.

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Instructions

Members may earn free CPE by reading the Tennessee CPA Journal. To be eligible for continuing professional education credit, you should spend approximately one to two hours reading the material in the current issue of the Tennessee CPA Journal. Then answer the following questions by darkening the circle which represents the best answer. Certify that you have completed the reading requirement for this exam by signing below. You must answer five of the seven questions correctly to receive credit. You should receive a copy of your graded test within four weeks of the date of submission. If you have not received a response within this time, please call TSCPA at 615/377-3825 or toll-free 1-800/762-0272. This program has been approved by the Tennessee State Board of Accountancy. This exam qualifies for credit under the reporting sub-category “Other - Code 10. ” CPAs licensed to practice in Tennessee may earn up to 20 percent of their total CPE requirements through this type of examination.