One of the Problems in Using One Set of Accounting

Multiple Choice

One of the problems in using one set of accounting records for tax reporting and another set of records for internal management reporting is that ________.

A) it is illegal as well as unethical to do so
B) the tax authorities may suspect manipulation of records
C) it is almost impossible to keep the records straight and hard to reconcile the books
D) the shareholders do not approve of such methods and the market prices will decline