Based on Its Income for the Month, Bates Company Estimates

question 64

Multiple Choice

Based on its income for the month, Bates Company estimates that it will owe $23,000 of federal income taxes for the month of May. What is the effect of the adjustment on the financial statements?

• A) Increase stockholders' equity
• B) Increase income taxes expense
• C) Increase retained earnings
• D) Decrease income taxes payable

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Definitions:

Crisis Briefing

An informative session or document aimed at providing essential information during a time of crisis.

Oral Briefing

A verbal presentation of information or data delivered to an audience or an individual.

Manuscript Presentation

The process of preparing and delivering a speech or presentation based on a written text, with emphasis on conveying the script's message effectively.

Environmental Factor

Any external element that can influence an organism's or system's functioning, including physical, chemical, and biological conditions.