All of the Following Are Conclusions Reached by the FASB

question 65

Multiple Choice

All of the following are conclusions reached by the FASB regarding accounting for deferred taxes except

• A)the use of a present value approach is acceptable
• B)interperiod tax allocation of temporary differences is appropriate
• C)the comprehensive allocation approach should be applied
• D)the asset/liability method of income tax allocation should be used

---

Definitions:

Tolerance for Risk

is the degree to which an individual, investor, or organization is willing to endure uncertainty and potential losses in pursuit of potential gains.

Total Payments

The sum amount of money transferred from one party to another, often referring to the complete payables in transactions, loans, or settlements.

Entrepreneur

An individual who starts and runs a business, assuming the risks and rewards associated with the venture, often innovating and driving economic growth.

Highly Valued Uses

These are applications or purposes for which a resource, product, or service is considered particularly beneficial or desirable, attracting higher willingness to pay.