Question
GAAP accounting is not appropriate for computing taxable income. Which of the following is NOT a reason for this? The goals of financial accounting and
GAAP accounting is not appropriate for computing taxable income. Which of the following is NOT a reason for this? The goals of financial accounting and tax reporting are very different (i.e. the provision of information to decision makers vs. equitable collection of revenue). Financial accounting relies on the principle of conservatism, which tends to understate income when uncertainty exists. O Financial accounting relies on estimates and probabilities, which is not suitable for an efficient and equitable tax system. O None of the above; all of these are reasons for the disuse of GAAP for tax purposes
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