When Tax Rates Are Changed Subsequent to the Creation of a Deferred

question 156

Multiple Choice

When tax rates are changed subsequent to the creation of a deferred tax asset or liability, GAAP requires that:

• A) All deferred tax accounts be adjusted to reflect the new tax rates.
• B) The beginning deferred tax accounts are left unchanged.
• C) Only the current deferred tax accounts are adjusted to reflect the new tax rates.
• D) Only the noncurrent deferred tax accounts are adjusted to reflect the new tax rates.

---

Definitions:

Info Screen

A display or section within software or an application that provides detailed information about the system or program's current state or selected items.

File Tab

In software applications, particularly those in the Microsoft Office suite, the tab that provides access to file-related commands, such as open, save, close, and print.

Dictionary

A reference book containing an alphabetical list of words with their meanings, derivations, and pronunciations.

Manually Deleting

The process of removing or erasing files, data, or records by direct user action, as opposed to automatic deletion by software.