Which Statement Is Accurate

question 10

Multiple Choice

Which statement is accurate?

• A)The taxes payable method is also known as the "deferral method."
• B)The deferral method and the accrual method are "tax allocation" approaches.
• C)The income statement approach is also known as the "accrual method."
• D)The balance sheet approach is also known as the "deferral method."

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Definitions:

Long-term Assets

Assets intended for use over an extended period, typically exceeding one year, such as buildings, machinery, or land.

Investing Activity

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company.

Cash Dividends Payable

A liability account that records the amount of cash dividends that a company has declared but has not yet paid to shareholders.