Question
Why is it helpful to compare personal income statements to tax returns.? a-it is unlikely that income will be overstated on tax returns, so they
Why is it helpful to compare personal income statements to tax returns.?
a-it is unlikely that income will be overstated on tax returns, so they are in good starting point to identify possible overstatements in the personal income statements
b-it will help you to identify whether the individual has overstated any assets or understated any liabilities in their personal statement
c-tax returns will have been audited by the IRS, so they can be relied on as a starting point when reviewing the personal income statement
d-it will help to resolve differences between the cash accounting used to compile tax returns and the accrual basis used in the personal income statement
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