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(CO B) Which of the following statements is false? The net worth analysis may be used when searching for hidden income in drug trafficking and

(CO B) Which of the following statements is false?

The net worth analysis may be used when searching for hidden income in drug trafficking and insurance fraud situations.

Whereas the focus of the net worth method is on the year-end balances as well as other assets and liabilities, the bank deposit technique looks at the funds deposited during the year.

The bank deposit method attempts to reconstruct gross taxable receipts rather than adjusted taxable income.

The bank deposit method is appropriate when most of the income is deposited in banks and most of the expenses are paid by checks.

All of the choices are true.

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