As Seen in Reality Check "How Good Is Good Enough

question 43

Multiple Choice

As seen in Reality Check "How Good Is Good Enough?" if 99.9% were good enough,how many documents would the IRS lose each year?

• A) 2 thousand
• B) 200 thousand
• C) 2 million
• D) 200 million

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Definitions:

Adjusting Entries

Ledger adjustments made at an accounting period's end to distribute income and spending according to the period they occurred.

GAAP

A body of accounting and financial reporting standards and rules widely adopted, defined as Generally Accepted Accounting Principles.

Revenue Recognition

The accounting principle that revenue should be reported at the time goods are sold or services are rendered, regardless of when the payment is received.

Expense Recognition

The accounting principle that matches incurred expenses to the revenue they generate, recognizing expenses in the same period as the related revenues.