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Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of a _____ organization.
Tax Deductible
Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.
Deferred Tax Asset
A tax benefit arising from temporary differences between the book value and tax basis of assets and liabilities, which will result in deductible amounts in future periods.
Deferred Tax Liability
A tax obligation that arises from temporary differences between the book value and tax value of assets and liabilities, to be paid in the future.
Accumulated Depreciation
The total amount of a tangible asset's cost that has been allocated as depreciation expense over the asset's useful life.
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