When Accounts Are Not in Logical Order -

question 18

Multiple Choice

When accounts are not in logical order -

• A)you will be unable to display some reports
• B)you can finish the history but you cannot complete journal entries
• C)your subtotal accounts may be following the subgroup accounts instead of the group accounts
• D)the total of debit and credit amounts in the Trial Balance may be unequal

Understand the rationale and requirements for disclosing details related to deferred tax assets and liabilities.

Comprehend the concept of interperiod tax allocation and its impact on matching revenues with expenses.

Analyze the effects of future income tax rate changes on net income.

Gain insight into the criteria for establishing, increasing, or decreasing a deferred tax asset valuation allowance.

---

Definitions:

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over the course of a year.

Revolving Line

A credit arrangement that allows a borrower to use or withdraw funds up to a designated limit, repay them, and borrow again.

Simple Interest

A method of calculating interest where the interest charge is based only on the original principal, not on the interest which has been added over time.

Annual Rate

The interest rate for a period of one year.