Once Determined, an Unrecognized Tax Benefit Under ASC 740 Is

question 27

True/False

Once determined, an unrecognized tax benefit under ASC 740 is not readjusted for subsequent events.

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Definitions:

Accounting Profits

The net income of a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing profit beyond the normal rate of return.

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.