Taxing Authorities Sometimes Use Financial Statement Information as a Basis

question 107

True/False

Taxing authorities sometimes use financial statement information as a basis for establishing tax rules to match accounting rules.

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Definitions:

Sarbanes-Oxley Act

A United States federal law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Accounting Scandals

Incidents that involve deliberate manipulation of financial statements and records for the purpose of misleading investors and stakeholders.

Values

Deeply held beliefs and ideals that guide an individual's or society's actions and judgments.

Moral Philosophies

The study of questions about morality, including the goodness or badness of actions, the nature of virtue, and the foundations of ethical principles.