Bezone Corp, is being alleged of tax fraud for the financial year 2015-2016. The ending net worth for the period was $2.285m and beginning net worth was $1.595m. Expenditures (consumption) during the period amounted to $0.725m. The reported income in Bezone's tax return amounted to $0.69. Other legitimate sources of funds in the tax return reported an income of $0.31. Which of the following statements is true of Bezone? O Bezone has committed tax fraud as its reported other income is less than the expenditures during the period. O Bezone has not committed tax fraud as its reported income and expenditures during the period are the same. O Bezone has committed tax fraud even though its reported income and change in net worth during the period are the same. O Bezone has committed tax fraud as its reported income is less than the expenditures during the period.
Bezone Corp, is being alleged of tax fraud for the financial year 2015-2016. The ending net worth for the period was $2.285m and beginning net worth was $1.595m. Expenditures (consumption) during the period amounted to $0.725m. The reported income in Bezone's tax return amounted to $0.69. Other legitimate sources of funds in the tax return reported an income of $0.31. Which of the following statements is true of Bezone? O Bezone has committed tax fraud as its reported other income is less than the expenditures during the period. O Bezone has not committed tax fraud as its reported income and expenditures during the period are the same. O Bezone has committed tax fraud even though its reported income and change in net worth during the period are the same. O Bezone has committed tax fraud as its reported income is less than the expenditures during the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bezone Corp, is being alleged of tax fraud for the financial year 2015-2016. The ending net worth for the period was $2.285m and beginning net worth was $1.595m. Expenditures (consumption) during the period amounted to $0.725m. The reported income in Bezone's tax return amounted to $0.69. Other legitimate sources of funds in the tax return reported an income of $0.31. Which of the following statements is true of Bezone?
O Bezone has committed tax fraud as its reported other income is less than the expenditures during the period.
O Bezone has not committed tax fraud as its reported income and expenditures during the period are the same.
O Bezone has committed tax fraud even though its reported income and change in net worth during the period are the same.
O Bezone has committed tax fraud as its reported income is less than the expenditures during the period.
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