INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 55

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
The tax year corresponds to the [ April 15 filing deadline | calendar year ].

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Definitions:

Deferred Tax Liability

A financial obligation to pay taxes in the future due to timing differences between the recognition of income and expenses for accounting and tax purposes.

Acquired Inventories

This term relates to the stock of goods a company obtains through purchasing or acquisition during mergers and takeovers.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of more than 50% of its voting shares.

Deferred Tax Asset

A financial statement item that represents an entity's right to reduce future tax payments, due to temporary differences between its reported income and its taxable income.