Managers Sometimes Decide to Do Something Because It Feels Right

question 68

Multiple Choice

Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using _____ in decision making.

• A) satisficing
• B) rationality
• C) intuition
• D) optimization
• E) logic

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Definitions:

Deferred Tax Liability Balance

An accounting term for taxes that are owed but not yet paid, a result of temporary differences between the tax basis of assets or liabilities and their carrying amount in the financial statements.

IFRS Deferred Tax Assets

Assets recognized in financial statements under International Financial Reporting Standards (IFRS) due to temporary differences that will result in deductible amounts in the future.

Interperiod Tax Allocation

The process of distributing income tax expenses or benefits over different accounting periods because of temporary differences that cause deferred tax amounts.

Intraperiod Tax Allocation

The allocation of income tax expense or benefit among various components of comprehensive income, net income, and other directly related statements within a single period.