If a Corporation Prepares an Adjusting Entry to Credit the Deferred

question 17

Multiple Choice

If a corporation prepares an adjusting entry to credit the deferred tax asset account, this should represent

• A) additional future income taxes payable.
• B) a transfer to the deferred tax liability account.
• C) the reversal of a deferred tax benefit that originated in a prior year.
• D) the reversal of a deferred tax expense that originated in a prior year.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, beginning with the stock market crash of 1929, leading to massive unemployment and poverty.

American Attitudes

The collective viewpoints or beliefs shared by the American public on various issues, culture, and policies.

Welfare

Governmental support aimed at ensuring the health, safety, and well-being of the population, often including assistance programs for the economically disadvantaged.

Noncontributory Programs

Social welfare programs that provide benefits to eligible individuals without requiring contributions from them, typically funded by general tax revenues.