At Their Fiscal Year End,Lorax Corp Has an (Unadjusted)$62,000 Credit

question 46

True/False

At their fiscal year end,Lorax Corp has an (unadjusted)$62,000 credit balance in their Income Tax Payable account.However,a review reveals that the actual liability is $70,000.Lorax Corp should prepare an adjusting entry to debit Income Tax Expense for $8,000 and credit Income Taxes Payable for $8,000.

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Definitions:

Effortful Processing

A type of information processing in the brain that requires a conscious effort and attention, unlike automatic processes.

Automatic Processing

Cognitive operations that occur without conscious thought, often quickly and effortlessly, such as recognizing faces or understanding words.

Incidental Information

Information that is not essential or central but may be encountered or learned by chance.

Sensory Memory

The shortest-term element of memory, responsible for holding sensory information for a few seconds or less.