Which Statement Is Not Correct

question 13

Multiple Choice

Which statement is not correct?

• A)The accrual method focuses on the balance sheet.
• B)The deferral method focuses on the income statement.
• C)The deferral methods matches tax expense to the balance sheet.
• D)The accrual and deferral methods are both tax allocation methods.

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Definitions:

Time Card

A record of the amount of an employee's time spent on different jobs, typically used for payroll purposes.

Internal Control

A system implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Payrolls

The total amount of money a company pays to its employees for a set period of time, including wages, salaries, bonuses, and deductions.

Fully Funded Pension Rights

A pension plan that has enough assets to meet all its obligations to retirees and current employees.