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.

---

Definitions:

Arteries

Arteries are the vessels responsible for transporting blood enriched with oxygen from the heart to the rest of the body.

Capillaries

The smallest blood vessels in the body, which facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and surrounding tissues.

Aorta

The largest artery in the human body, originating from the left ventricle of the heart and extending down to the abdomen, distributing oxygen-rich blood to all parts of the body.

Sphygmomanometer

A device used to measure blood pressure, consisting of an inflatable cuff to restrict blood flow, and a mercury or aneroid manometer to measure the pressure.