Most large U.S. corporations keep two separate sets of books, one for stockholders and one for the Internal Revenue Service.

Question

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Large U.S. corporations often maintain one set of financial records for public reporting purposes, adhering to Generally Accepted Accounting Principles (GAAP), and another for tax purposes, following the Internal Revenue Code. This practice is legal and arises from differences in accounting methods allowed by the IRS versus those required for financial reporting.

Most Large U