One of the problems in using one set of accounting records for tax reporting and another set of records for internal management reporting is:
A)it is illegal
B)tax authorities may suspect manipulation of records
C)it is almost impossible to keep the records straight and hard to reconcile the books
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Using different sets of records can lead tax authorities to suspect manipulation, as it may appear that the company is trying to present different financial positions for different purposes.

One of the Problems in Using One Set of Accounting