Which of the Following Has Contributed Most to the Significant

question 47

Multiple Choice

Which of the following has contributed most to the significant increase in world trade since
1960?

• A)increase in world population
• B)advances in communication and transportation that have lowered transportation costs
• C)increases in military spending in every nation
• D)consumers' changing tastes and preferences

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Definitions:

MACRS Depreciation

The Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. that allows for faster depreciation of assets over time for tax purposes.

Temporary Differences

The differences between the accounting income and taxable income that are not permanent and will reverse in future periods.

Permanent Differences

These are variations between taxable income and accounting income that originate from certain items being recognized in one manner for tax purposes and another for financial reporting purposes and do not reverse over time.

Pretax Financial Accounting

The process of preparing financial statements that calculate revenues, expenses, and earnings before taxes are deducted.