Sources and Uses of Funds Are Made Equal Through

question 121

Multiple Choice

Sources and uses of funds are made equal through:

• A)A balancing item
• B)Pro forma financial statements
• C)Borrowing cash
• D)Additions to retained earnings

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Definitions:

Ignoring Income Taxes

Refers to the accounting practice or principle where income taxes are not considered in the calculation of financial metrics or performance evaluations.

Deferred Tax Asset

A tax reduction amount that can be used to offset future taxable income, arising from temporary differences between book and tax income.

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.

Carrying Values

The book value of assets and liabilities as reported on the balance sheet, accounting for depreciation, amortization, and impairment.