The Recognition of a Deferred Tax Liability That Results from the Use

question 23

Multiple Choice

The recognition of a deferred tax liability that results from the use of straight-line depreciation on financial statements and double-declining balance on tax returns will

• A)increase the current ratio.
• B)increase the debt/equity ratio.
• C)increase the quick ratio.
• D)decrease the debt/asset ratio.

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Definitions:

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic.

Critical Value

A threshold in hypothesis testing that defines the boundary between the region where the null hypothesis is rejected and where it is not.

Degrees of Freedom

The number of independent values or quantities that can vary in the statistical analysis without violating any constraints.

Degrees of Freedom

The number of values in the final calculation of a statistic that are free to vary.