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

question 56

Multiple Choice

Under the accrual method,what is the effect of the current year temporary difference in F2015? $$\begin{array} { | l | r | r | } \hline & \text { F2014 } & \text { F2015 } \\\hline \text { Deferred tax liability } & 27,500 & \\\hline \text { Revenue } & & 150,000 \\\hline \text { Taxable income } & & 105,000 \\\hline \text { Tax rate } & 25 \% & 35 \% \\\hline\end{array}$$

• A)11,000
• B)42,500
• C)52,500
• D)63,500

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Definitions:

Work Sampling

A statistical technique used to estimate the proportion of time spent by workers on various tasks, through random observations over a period.

Acceptable Error

The degree of deviation from a standard or accurate value that is considered tolerable or permissible in computations or measurements.

Sample Proportion

The fraction of a sample that exhibits a particular attribute or characteristic.

Predetermined Time Standards

Benchmarks or norms established in advance for the completion of tasks based on analyses of work measurements.