Which of the Following Explain Why It Is Important to Determine

question 30

Multiple Choice

Which of the following explain why it is important to determine the period in which income is recognized?

• A)Marginal tax rates may be different in different periods.
• B)Tax laws may change
• C)The time value of money
• D)All of the above are explanations

---

Definitions:

Centralized Organizations

Organizations where decision-making authority is concentrated at the top levels of management.

Decentralized Organizations

Organizations that distribute power away from a central authority, often featuring a more spread out decision-making process.

Values-based Ethics

An ethical approach that is rooted in the core values and principals of an individual or organization, guiding decision-making and actions.

Explicit Mission Statement

A clear, concise statement that defines an organization's purpose and primary objectives.