What Is the General Statute of Limitations on Assessment of Income

question 21

Multiple Choice

What is the general statute of limitations on assessment of income tax:

• A) 6 years
• B) 3 years
• C) 7 years for criminal tax evasion.
• D) None of the above.

Recognize the role of non-cash transfers and government policies in affecting income distribution.

Assess the impact of individual qualities and external factors on earnings and income inequality.

Analyze the temporal aspect of income inequality and the significance of income mobility.

Understand the role of chance and external benefits in contributing to income inequality.

---

Definitions:

Expenses

Costs incurred in the process of earning revenues, typically categorized as operating or non-operating.

Owner's Drawings

Withdrawals made by the owner of a sole proprietorship or partnership from the business for personal use.

Revenues

The total income generated from the sale of goods or services related to a company's primary operations.

Adjusting Entries

Entries recorded in journals at the conclusion of an accounting period to assign revenues and costs to the time frame in which they were genuinely incurred.