Which Is Correct Regarding the Effect of Tax Rate Changes

question 36

Multiple Choice

Which is correct regarding the effect of tax rate changes on income tax expense, assets and liabilities?

• A)When a company makes no sales and has no expenses such that its pre-tax income is zero, a change in tax rate always results in zero net income.
• B)Enterprises need to take account of changes in future tax rates legislation only if it has been passed into legislation and not if it is only considered "substantively enacted."
• C)When the tax rate decreases, the decrease in deferred tax liabilities creates a tax expense.
• D)When the tax rate increases, the increase in deferred tax liabilities creates tax expense.

Analyze the structures of attitudes and their influence on attitude change.

Recognize the use of persuasive techniques, such as low-balling, in attitude change.

Identify and explain the phenomenon of cognitive dissonance and its impact on attitudes and behaviors.

Understand the relationship between attitudes and behaviors, including the distinction between public and private behaviors.

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Definitions:

Top-Down Processing

An information processing approach where perception begins with the brain, applying what it knows or expects to perceive and interpret the information from that top-level down.

Corrective Eye Surgery

Surgical procedures that aim to correct vision problems, such as nearsightedness, farsightedness, or astigmatism, to reduce dependency on glasses or contact lenses.

Visually Distinguish

The ability to identify and differentiate objects or elements based on visual cues and characteristics.

Immanuel Kant

An 18th-century German philosopher known for his critical philosophy, especially his critique of pure reason and moral philosophy.