Andy Filed a Fraudulent 2016 Tax Return on May 1

question 53

Multiple Choice

Andy filed a fraudulent 2016 tax return on May 1, 2017. The statute of limitations for IRS assessment on Andy's 2016 tax return should end:

• A)May 1^st, 2019.
• B)April 15^th, 2019.
• C)May 1^st, 2020.
• D)April 15^th, 2020.
• E)None of the abovE.There is no statute of limitations for fraudulent tax returns.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the accounts for the next period.

Owner's Equity Statement

A financial statement that shows the changes in the equity of a company's owner(s) over a period of time.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Adjusted Trial Balance

A statement that lists all accounts and their balances after adjustments have been made, serving as the basis for preparing financial statements.