Which of the Following Should Increase the Likelihood That Ms

question 14

Multiple Choice

Which of the following should increase the likelihood that Ms. Piper's Form 1040 will be selected for audit by the IRS?

• A)Ms.Piper files as head of household because she maintains a home for her 89-year old mother who has Alzheimer's disease.
• B)Ms.Piper's AGI is $58,400, and she deducted $17,590 of charitable contribution on her Schedule
• C)Ms.Piper reported $10,200 alimony income from her former spouse.
• D)None of the above should increase the likelihood of audit.

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Definitions:

Operating Activities

Activities related to the core business operations of a company, such as selling goods and services.

Indirect Method

A financial reporting approach used to prepare the cash flow statement, where net income is adjusted for non-cash transactions, changes in working capital, and other items.

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.

Dividends Payable

A liability recorded when a company declares dividends but has not yet paid them to shareholders.