Under the Accrual Method,what Is the Effect of the Current

question 34

Multiple Choice

Under the accrual method,what is the effect of the current year temporary difference in F2014? $$\begin{array} { | l | r | r | r | } \hline & \text { F2013 } & \text { F2014 } & \text { F2015 } \\\hline \text { Deferred tax liability } & 30,000 & & \\\hline \text { Revenue } & & 130,000 & 150,000 \\\hline \text { Taxable income } & & 95,000 & 105,000 \\\hline \text { Tax rate } & 30 \% & 35 \% & 35 \% \\\hline\end{array}$$

• A)5,000
• B)27,500
• C)32,500
• D)37,500

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Definitions:

Consumer Equilibrium

A state in microeconomics where a consumer achieves the highest satisfaction possible, given their income constraints and prices of goods and services.

Prices

The amount of money required to purchase a good or service, reflecting the value placed on it by the market.

MU/P

The ratio of marginal utility (MU) to price (P), representing the additional satisfaction gained per unit of currency spent.

Less Of

A comparative term indicating a reduced quantity or degree of something.