Which Statement Is Correct About the "Taxes Payable Method

question 7

Multiple Choice

Which statement is correct about the "taxes payable method"?

• A)It is the accounting method used under both ASPE and IFRS.
• B)It records an amount for income tax equal to the tax payments required.
• C)It matches income with the associated income tax expense.
• D)It records an amount for income tax equal to the net income before tax.

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Definitions:

Utilitarian Ethics

An ethical theory that emphasizes the outcomes of actions, proposing that the most ethical decisions are those that maximize happiness or well-being for the greatest number of people.

Morally Correct

Acting in accordance with ethical principles and acknowledged standards of right and wrong behavior.

Greatest Good

A principle often associated with utilitarian ethics, emphasizing the action that results in the most benefit or happiness for the greatest number of people.

Cost-benefit Analysis

A systematic approach to estimate the strengths and weaknesses of alternatives, used to determine the best option in terms of benefits outweighing costs.