Question: One often hears the comment A business keeps two sets of recordsone for the bank and one for tax purposes. While this comment has sinister

One often hears the comment “A business keeps two sets of records—one for the bank and one for tax purposes.” While this comment has sinister connotations, to what extent is it not sinister? Explain how the failure to maintain separate records for tax purposes may reduce a company’s rate of return on business activities.

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