Which of the following is the most relevant accounting information for taxation
authorities ?
a) Cash balance of the firm b) Book value of the fixed assets
c) Credit sales of the year d) Profit generated during the year
Dear Student,
'Profit generated during the year' is most relevant accounting information for taxation authorities. This is because the taxation authorities are primarily concerned with determining the tax liability of the business and that liability depends on the quantum of profits earned.
Hence, the correct answer is option (d).
'Profit generated during the year' is most relevant accounting information for taxation authorities. This is because the taxation authorities are primarily concerned with determining the tax liability of the business and that liability depends on the quantum of profits earned.
Hence, the correct answer is option (d).