Question

Government organizations such as the IRS and other government regulatory agencies are interested in a firm's accounting information in order to help the firm strategize about ways to cut costs in order to minimize net income before taxes.

a. True
b. False

Answer 1

Answer: False

Step-by-step explanation:

The role of the IRS and other Government regulatory agencies is to collect taxes as well as to ensure that companies follow the prescribed Generally Accepted Accounting Principles. This is the main purpose that they go through a firm's Accounting records. To ensure that they are paying the correct amount of taxes and to ensure that they are not engaging in illegal and unacceptable accounting practices.