When Enacted Tax Rates Change,the Asset and Liability Method of Interperiod

question 16

Multiple Choice

When enacted tax rates change,the asset and liability method of interperiod tax allocation recognizes the rate change as

• A) a cumulative effect adjustment.
• B) an adjustment to be netted against the current income tax expense.
• C) a separate charge to the current year's net income.
• D) a separate charge or benefit to income tax expense.

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Definitions:

Ionic

Relating to ions or the chemical bonds formed through the electrical attraction between oppositely charged ions.

Bonding

The attractive force that holds atoms or ions together in a molecule or compound, forming a stable substance.

Lewis Structure

A schematic that outlines the atomic connections within a molecule and highlights any existing unbonded electron pairs.

Ethyne

A hydrocarbon with the chemical formula C2H2, characterized by a triple bond between two carbon atoms, making it the simplest alkyne.