One of the Problems in Using One Set of Accounting

question 118

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 that:

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

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Definitions:

Common Law

A legal system based on custom and court rulings rather than written laws passed by a legislature.

National Pollutant Discharge

The release of pollutants from point sources into navigable waters, regulated by national environmental authorities.

Industrial Wastewater

Water that has been contaminated through its use in industrial processes, which requires treatment before being released back into the environment.

Air Quality Statute

Legislation aimed at regulating, controlling, and improving the air quality within a specific area.