Which of the Following Statements Is True

question 83

Multiple Choice

Which of the following statements is true?

• A)ASC 740 focuses on the income tax expense or benefit on the income statement.
• B)ASC 740 focuses on the balances in the deferred tax assets and liabilities on the balance sheet.
• C)ASC 740 focuses on the income taxes paid or refunded in the statement of cash flows.
• D)ASC 740 focuses on the computation of a company's effective tax rate in the income tax note to the financial statements.

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Definitions:

Acceleration Clause

A provision in a loan contract that allows the lender to demand immediate repayment of the entire loan amount if certain conditions are breached.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Negotiable

Able to be transferred or endorsed to another party in exchange for money or as part of a contractual agreement.

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.