A Taxpayer Will Receive a 30- Day Letter

question 65

Multiple Choice

A taxpayer will receive a 30- day letter

• A) only if the taxpayer is more than 30 days late in filing the tax return.
• B) to notify him that the return was selected for audit.
• C) only if the taxpayer does not sign Form 870.
• D) after a response to the 90- day letter with a protest.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for a fixed asset, reducing its book value on the balance sheet over time.

Income Statement Columns

Sections within an income statement that separate financial data into categories, such as revenues, expenses, and net income, to facilitate analysis and understanding of a company's financial performance.

Adjusting Entries

Accounting records created at the closing of an accounting period for the purpose of assigning revenues and expenses to the timeframe in which they truly took place.

Adjusted Trial Balance

A financial statement that lists all the accounts and balances after adjustments have been made.