Briefly Compare the Differences Between Ordinary Negligence, Gross Negligence, and Fraud

question 91

Essay

Briefly compare the differences between ordinary negligence, gross negligence, and fraud.

Distinguish between correcting entries and adjusting entries.

Understand the methods of correcting errors on saved documents in QBO.

Know how to make specific types of adjusting entries for accrued expenses and prepaids in QBO.

Understand the different types of adjusting entries and their importance in financial reporting.

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Definitions:

Personal/Rental Property

Real estate that is used by the owner or rented out to others, can be subject to different tax treatments based on its use.

Personal Use

The use of property or resources for individual needs or activities not related to business or profit-making.

Schedule C

Schedule C is a tax form used by sole proprietors to report their business income and expenses to the IRS.

Schedule E

Used by taxpayers to report income and losses from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.