If Congress Enacts Legislation Late in the Year That Is

question 60

Multiple Choice

If Congress enacts legislation late in the year that is retroactive to the beginning of the year, the legislation increases:

• A) Audit risk
• B) Tax law uncertainty
• C) Financial risk
• D) Marginal tax rate uncertainty

---

Definitions:

Posting Reference

A notation or code that links journal entries to the corresponding ledger accounts, facilitating tracking and reviewing of financial transactions.

Journal Page Number

The specific page number in a journal where transactions are recorded, aiding in tracking and referencing financial activities.

Account Number

A unique sequence of numbers assigned to a customer's account in the books of a financial institution.

Prepaid Insurance

Definition: An asset account that represents insurance payments made in advance for coverage extending beyond the current financial reporting period.