Which of the Following Statements Is True as to GAAP

question 143

Multiple Choice

Which of the following statements is true as to GAAP regarding accounting for income taxes, and its use of the asset and liability approach?

• A) Considerable flexibility is permitted in the balance sheet classification of deferred tax amounts.
• B) The approach recognizes the time value of money.
• C) The approach is consistent with a balance sheet emphasis of U.S. GAAP and the International Financial Reporting Standards (IFRS).
• D) The approach is consistent with cash basis accounting.

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Definitions:

E-to-P Expectancies

The belief about the probability that putting effort into a task will lead to achieving performance objectives.

Emotional Markers

Psychological indicators that relate to an individual's emotional state or changes, often influencing decision-making and behavior.

Four-drive Theory

A motivational theory suggesting that human beings have four basic drives: the drive to acquire, the drive to bond, the drive to learn, and the drive to defend.

Emphasis

Special importance, value, or prominence given to something.