Hot, Inc'S Primary Competitor Is Cold, Inc

question 21

Multiple Choice

Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative deferred tax asset and liability accounts with Cold, which of the following benchmarking activities should Hot undertake?

• A) Scale the deferred tax assets and liabilities by total sales or total assets.
• B) Compare raw dollar amounts of deferred tax assets and liabilities.
• C) Ignore deferred tax assets and liabilities and focus on overall effective tax rate.
• D) Ignore all tax information other than the current tax expense.

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Definitions:

Percentile Score

A statistical measure indicating the value below which a given percentage of observations in a group of observations falls.

Marlowe-Crowne

A social desirability scale used in psychology to measure the tendency of respondents to answer questions in a manner that will be viewed favorably by others.

Need For Approval

The human desire to be accepted and validated by others, often influencing behavior and self-perception.

Random Assignment

A method used in experiments to place participants into different groups using randomization to reduce bias and ensure statistical significance.