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8. A company that uses different accounting methods in preparing its tax returns as compared to the accounting methods used to prepare its financial statements
8. A company that uses different accounting methods in preparing its tax returns as compared to the accounting methods used to prepare its financial statements is! a. in violation of the consistency principle b. probably violating neither the income tax laws nor generally accepted accounting! principles c. probably guilty of tax evasion d. in violation of the relevance assumption 9. a. Which of the following sets includes only accounting assumptions and conventions? timeliness, prudence, historical cost, and neutrality matching, comparability, period of time, and reliability monetary unit, going concern, relevance, and materiality monetary unit, entity, going concern, and realization-recognition c. d. 10. Which of the following errors will be detected by a trial balance? a. posting a credit to Sales instead of to Accounts Payable b. incorrectly computing the balance of the cash account c. not journalizing a complete sales transaction d. forgetting to post a complete purchase transaction
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