Assume It Is the First Year of Operations

question 49

Multiple Choice

Assume it is the first year of operations. When pretax accounting income exceeds taxable income, a:

• A)Deferred Tax Asset is debited.
• B)Deferred Tax Liability is credited.
• C)Deferred Tax Asset is credited.
• D)Deferred Tax Liability is debited.

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Definitions:

Enforceable

A characteristic of a legal agreement or rule that allows it to be officially imposed or compelled to be complied with.

Needy Friend

A friend who requires or demands excessive attention, support, or assistance.

Legal Offer

A proposal by one party to another intended to create a legally binding agreement upon acceptance.

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Printing devices that use a laser beam to transfer text and images to paper by selectively melting toner.