One of the Problems in Using One Set of Accounting

question 48

Multiple Choice

One of the problems in using one set of accounting records for tax reporting and another set of records for internal management reporting is:

• A)it is illegal
• B)tax authorities may suspect manipulation of records
• C)it is almost impossible to keep the records straight and hard to reconcile the books
• D)Both A and B are correct.

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Definitions:

Cost

The amount of money required to purchase something or to produce a good or service.

Invoice

A document issued by a seller to a buyer that lists goods or services provided and the amount due.

Terms

Conditions and stipulations that are part of an agreement or contract.

Terms

Conditions and agreements under which a service, sale, or transaction is conducted.