If a Corporation Is Profitable,directors Must Declare a Dividend to Holders

question 40

True/False

If a corporation is profitable,directors must declare a dividend to holders of common shares according to their proportionate shareholding.

Recognize the role of GAAP in tax allocation and the objectives behind income tax accounting.

Calculate the tax base of assets and liabilities for the purpose of recognizing deferred taxes.

Understand the concept of temporary differences in accounting.

Identify and record deferred tax liabilities and assets.

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Definitions:

Test Statistic

A statistic (a function of the data) used in statistical hypothesis testing to decide whether to reject the null hypothesis.

P-value Approach

A method in hypothesis testing that uses the p-value, the probability of obtaining test results at least as extreme as the observed, under the assumption the null hypothesis is true.

Critical Values

Specific points along the scale of a test statistic that delineate the acceptance or rejection of the null hypothesis.

Two-Tailed Hypothesis

A statistical test where the area of interest lies in both tails of the distribution, testing for the possibility of a relationship in both directions.