The IRS Selects Returns to Audit That Have the Highest

question 21

True/False

The IRS selects returns to audit that have the highest probability of generating additional revenue.

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Definitions:

Financial Accounting

The field of accounting concerned with the summary, analysis, and reporting of financial transactions pertaining to a business.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Managerial Accounting

The practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.

Primary Goal

The main objective or purpose that an organization, individual, or project aims to achieve.