Of the Following Industries,which Is Most Likely to Be Owned

question 89

Multiple Choice

Of the following industries,which is most likely to be owned by a small business owner?

• A)nursing home
• B)paper mill
• C)home building company
• D)electric utilities company

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Definitions:

Temporary Differences

Differences between the tax base of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in the future.

Taxable Income

The amount of income used to calculate how much the entity owes in taxes to the federal, state, and/or local government.

Pretax Financial Income

The income of a company before taxes are deducted, often used in financial reporting and analysis.

Interperiod Tax Allocation

A method used in accounting to allocate income taxes over different periods to match taxes with the revenues they affect.