Which of the Following Statements Is (Are) Correct About Deferred

question 10

Multiple Choice

Which of the following statements is (are) correct about deferred taxes?
I. Deferred taxes can occur because of geographical problems with the location of corporate headquarters.
II. Deferred taxes can occur because some companies use the straight-line depreciation method to calculate
Income reported to stockholders and accelerated depreciation to calculate taxable income. This practice
Reduces taxes owed.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Utilitarian Needs

Needs motivating the consumer to purchase something practical and functional.

Cycle

A sequence of events or processes that recur regularly, returning to the starting point and often leading to predictable outcomes.

Expectancy Theory

A theory that explains the behavioral process of why people choose one behavioral option over others, suggesting that individuals are motivated by an expected outcome.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.