On December 31, 2020, XYZ Inc

question 51

Multiple Choice

On December 31, 2020, XYZ Inc. has an account receivable of $2,000 for consulting fees it earned during the year. Consulting revenues are only taxable when collected. XYZ normally receives payment for the services rendered one month after the client is invoiced. Assuming a 20% tax rate, these revenues shall result in:

• A) a deferred tax liability of $2,000.
• B) a deferred tax liability of $400.
• C) a deferred tax asset of $400.
• D) a deferred tax asset of $2,000.

---

Definitions:

Functionalist Perspective

A theory in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

Conflict Perspective

A theoretical framework in sociology that emphasizes the role of power disparities and competition in shaping social relations and institutions.

Symbolic Interactionist Perspective

A theoretical approach in sociology that focuses on the meanings individuals attribute to objects, events, and behaviors, and how these meanings influence social interactions.

Feminist Perspective

An analytical framework that explores how gender, particularly women's experiences and perspectives, shape social structures and relationships.