Which of the Following Statements About Taxpayer Responsibility Is False

question 61

Multiple Choice

Which of the following statements about taxpayer responsibility is false?

• A)Taxpayers are responsible for paying the correct amount of federal tax.
• B)Taxpayers are responsible for filing the proper federal income tax return.
• C)Taxpayers are responsible for maintaining adequate tax records.
• D)None of the above is false.

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Definitions:

Accrual-Basis Accounting

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Financial Statements

Reports that summarize the financial activities of a business, including the balance sheet, income statement, and cash flow statement.

Recognized

In accounting, recognized refers to the formal acknowledgment of a financial transaction or event in the financial statements of a business.

Adjusting Entry

At the close of an accounting period, entries recorded in the financial ledgers to distribute incomes and costs to the period they genuinely happened.