Which of the Following Items Is Not a Reconciling Item

question 34

Multiple Choice

Which of the following items is not a reconciling item in the income tax footnote?

• A)Compensation deduction related to incentive stock options.
• B)Compensation deduction related to nonqualified stock options that were expensed for financial accounting purposes.
• C)Dividends received deduction.
• D)State and local income taxes.

---

Definitions:

Confidence Interval

An aggregate of values, concluded from statistical review of samples, assumed to likely house the unknowable value of a population parameter.

Prediction Interval

A range of values that is likely to include the value of an unknown parameter for a future observation with a specified probability.

Heteroscedasticity

A condition in regression analysis where the variance of errors or the variability of a dependent variable is unequal across all levels of an independent variable.

Residuals

The differences between observed values and the values predicted by a model, indicating the error in predictions.