When Returns Are Processed,they Are Scored to Determine Their Potential

question 50

Multiple Choice

When returns are processed,they are scored to determine their potential for yielding additional tax revenues.This program is called

• A)Taxpayer Compliance Measurement Program.
• B)Discriminant Function System.
• C)Standard Audit Program.
• D)Field Audit Program.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects on its credit sales by dividing total credit sales by the average accounts receivable.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Eighteen Months

A period of time equal to one and a half years.

Note Receivable

A written promise that someone will pay a business a specific sum of money on a specified date or on demand.