Which of the Following Individuals Is Most Likely to Be

question 79

Multiple Choice

Which of the following individuals is most likely to be audited?

• A)Lola has AGI of $35,000 from wages and uses the standard deduction.
• B)Marvella has a $145,000 net loss from her unincorporated business (a horse farm).She also received $950,000 salary as a CEO of a corporation.
• C)Melvin is retired and receives Social Security benefits.
• D)Jerry is a school teacher with two children earning $55,000 a year.He also receives $200 in interest income on a bank account.

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Definitions:

Chief Accounting Officer

This is an executive role responsible for overseeing the accounting operations and financial reporting of a company.

Corporation

A legal entity that is separate from its owners, who own shares in the company and have limited liability.

Controller

A senior executive responsible for the accounting operations and financial reporting of a company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.