Which Statement Is Correct

question 38

Multiple Choice

Which statement is correct?

• A)The deferral and accrual methods produce the same tax expense when tax rates are constant.
• B)The deferral method applies new tax rates to accumulated tax balances.
• C)The accrual method applies new tax rates to only to current year's income.
• D)The deferral and accrual methods produce the same tax expense when tax rates are falling.

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Definitions:

Taking Control

The act of assuming command or management over a situation, often to direct outcomes or influence behavior.

Follow-up Message

A communication sent to inquire or remind about a previous message or action.

Thank-you Note

A written expression of gratitude, typically sent to acknowledge a gift, service, or favor.

Organizational Model

A conceptual framework that outlines the structure, processes, and methods an organization uses to achieve its objectives efficiently.