KER Commenced Operations in 2013

question 42

Multiple Choice

KER commenced operations in 2013.The company had recorded an accrual for warranty expenses in its books during the year ended December 31, 2013, its first year of operations, amounting to $100,000.During the year 2014, customers required service from goods sold in 2014 amounting to $60,000.There were no similar expenditures made during 2013.KER recorded an amount for possible warranty costs for goods sold during the year in the amount of $95,000.Accounting income amounted to $80,000 and the tax rate is 40%.Assuming that KER has no other differences between accounting and tax what are the current and deferred income tax amounts that will appear on the 2014 statement of financial position?

• A)Income Taxes Payable (Current): $46,000; deferred tax asset: $54,000
• B)Income Taxes Payable (Current): $22,000; deferred tax liability: 14,000
• C)Income Taxes Payable (Current): $22,000; deferred tax asset: $14,000
• D)Income Taxes Payable (Current): $46,000; deferred tax liability: $54,000

Explain the effects of encoding specificity and context-dependent memory on recall.

Identify strategies to enhance memory, such as chunking and the creation of associations.

Understand the principles of primacy and recency in memory recall.

Illustrate the differences between short-term, long-term, and working memory.

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Definitions:

Households

Economic units consisting of all individuals living in a single residence, making decisions about consumption, savings, and investment.

Business Inputs

Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods will be offered for sale.

Political Hierarchy

A system of organization within a political entity or government where individuals or groups are ranked one above the other based on authority or power.