The Following Adjusting Journal Entry Found in the Journal Is

question 190

Multiple Choice

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

• A)Record payment of taxes.
• B)Record taxes expense incurred and to be paid in next period.
• C)Record taxes paid in advance.
• D)Record tax bill received from government.

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Definitions:

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Salvage Value

The estimated resale value of an asset at the end of its useful life, accounting for depreciation.

Discount Rate

In discounted cash flow analysis, this is the rate used to ascertain the present worth of cash flows expected in the future.

Tax Rate

The tax imposition rate on the financial gains of individuals and corporations.