Which of the Following Helps Limit Risk from Violation of Tax

question 63

Multiple Choice

Which of the following helps limit risk from violation of tax regulations?

• A) The owner should make payments to creditors by borrowing from tax money.
• B) The owner should understate revenues and overstate deductible expenses.
• C) The owner should take cash from the businesses before it is recorded as revenue.
• D) The owner should hire an accountant and a lawyer who are expert in tax issues.

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Definitions:

Genetic Make-Up

The unique combination of genes inherited from both parents that determines the biological characteristics and traits of an individual.

Disposition

A person’s inherent qualities of mind and character.

Observable Behaviors

Observable behaviors refer to actions or responses of an individual that can be directly seen or measured.

Mental States

The various conditions of the mind, including thoughts, emotions, beliefs, intentions, and perceptions.