Which One of the Following Is Correct Concerning a Head

question 49

Multiple Choice

Which one of the following is correct concerning a head and shoulders top pattern?

• A)The outside of the right shoulder is a bullish signal.
• B)The shoulders are higher than the head.
• C)The left shoulder must be higher than the right shoulder, but lower than the head.
• D)A piercing of the neckline is a reversal signal.
• E)The trend line must be relatively flat throughout the pattern.

---

Definitions:

Income Tax Liability

The amount of money an individual or corporation owes to the government based on the taxable earnings for a fiscal period.

Income Tax Expense

Income tax expense is the amount of money a company is required to pay in taxes based on its taxable income for a given period.

Deferred Tax Expense

A financial reporting concept referring to the difference in taxes payable in the future due to temporary differences between the tax and book accounting.

Deferred Tax Liability

A tax obligation that a company owes but can delay paying to a future period, often arising from differences in accounting methods for book and tax purposes.