Using Your Knowledge of GAAP and Financial Reporting, List and Explain

question 60

Essay

Using your knowledge of GAAP and financial reporting, list and explain one good reason why GAAP should not be used for tax purposes and one good reason why it should be used.

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Definitions:

Noncreative

Lacking originality, innovation, or the ability to produce new or unique ideas or outcomes.

Positive Reinforcement

A process by which rewarding a behavior immediately after it occurs increases the likelihood that the behavior will be repeated.

Desired Behavior

The specific actions or reactions an individual or organization aims to evoke from others.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.