Match the Term with Its Definition

question 54

Multiple Choice

Match the term with its definition.
-Fees paid by the licensee to the licensor for each unit produced under a licensing contract

• A)bill of lading
• B)born-global firms
• C)counterfeit activity
• D)economies of scale
• E)exchange rate
• F)letter of credit
• G)political risk
• H)royalties

---

Definitions:

Deferred Tax Liabilities

Future tax liabilities arising from temporary differences between the book value and the tax basis of assets and liabilities.

Book Income Tax Expense

The amount of income tax expense that is reported in the financial statements, which may differ from actual taxes paid due to timing or differences in accounting and tax rules.

Deferred Tax Assets

Financial items on a company's balance sheet representing taxes paid or carried forward but not yet realized in the income statement.

Earnings Quality

An assessment of the reliability and sustainability of a company's income, indicating the extent to which earnings are derived from core business activities versus non-recurring, unusual transactions.