Which of the Following Best Describes the Focus of ASC

question 4

Multiple Choice

Which of the following best describes the focus of ASC 740?

• A)ASC 740 uses an "asset and liability approach" that focuses on the balance sheet.
• B)ASC 740 uses an "income and expense approach" that focuses on the income statement.
• C)ASC 740 uses a "taxes paid or refunded approach" that focuses on the statement of cash flows.
• D)ASC 740 uses a "permanent differences approach" that focuses on the effective tax rate reported in the income tax note to the financial statements.

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Definitions:

Unstructured Interview

A type of interview in which the questions are not predetermined, allowing for a free-flowing and open-ended conversation.

Graphic Rating

A method used in assessments where subjects are rated along a continuum or scale to visually depict their performance, attitudes, or feelings.

Checklist

A list of items or tasks that are checked off as they are completed or noted; often used for systematic verification or assessment.

Organizational Psychology

A field of psychology that studies human behavior in workplace settings and applies psychological theories and principles to organizations.