Assume It Is the First Year of Operations

question 115

Multiple Choice

Assume it is the first year of operations. When taxable income exceeds pretax accounting income, accountants record a(n) :

• A)Deferred Tax Asset.
• B)Deferred Tax Liability.
• C)Income Tax Payable.
• D)Prepaid Income Taxes.

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Definitions:

Volume Variance

An assessment of the impact of production or sales volume differences on a company's revenue or expenses, relative to budgeted amounts.