A company may choose to keep one set of accounting records for tax reporting and a second set for internal management reporting.

Question

Quizplus · Accepted Answer

It is possible and sometimes common for a company to maintain separate sets of accounting records for tax reporting and internal management reporting. The tax reporting records are typically prepared in accordance with the requirements of tax laws, while the internal management reporting records may include additional information and be presented in formats that better serve the company's needs for decision making and planning.

A Company May Choose to Keep One Set of Accounting