Which of the Following Is False Regarding the Return Audit

question 1

Multiple Choice

Which of the following is false regarding the return audit process?

• A)The higher DIF score a return gets, the higher the likelihood for audit.
• B)An office audit is performed at an IRS office.
• C)50 percent of taxpayers are audited every year.
• D)None of the above is false.

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Definitions:

Economies of Scale

Economies of scale occur when increasing the production scale leads to a decrease in the long-term average costs, often due to more efficient use of inputs.

Exclusive Franchise

A legal agreement granting one party the sole right to sell or distribute a company's products or services in a particular market area.

Conglomerate Merger

involves the combination of firms that operate in unrelated business areas, aiming for diversification and reduced business risk.

Distinct Industries

Different sectors of the economy that produce different types of goods or services, characterized by unique products, markets, and production processes.