While German Tax Computations Are Based on Financial Accounting Standards

question 62

Multiple Choice

While German tax computations are based on financial accounting standards, this is not true in the United Kingdom.Why doesn't the U.K.base its tax code on financial accounting standards?

• A)The United Kingdom tries to avoid being like Germany whenever it can.
• B)The United Kingdom had a tax code long before it had financial accounting standards.
• C)Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes.
• D)Germany follows the directives of the European Union, whereas the United Kingdom has not adopted the directives of the EU.

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Definitions:

Dividend Growth

The rate at which a company's dividend payments to shareholders increase over time, indicating the company's growth and stability.

Annual Dividend

A yearly payment made by a corporation to its shareholders, usually derived from the company's profits.

Rate of Return

The profit or shortfall on an investment over a predetermined period, expressed as a proportion of the investment's initial outlay.

Dividend Increase

An action by a corporation to raise the amount of dividends paid to its shareholders.