Under IAS 12,current and Deferred Taxes Are Measured on the Basis

question 5

Multiple Choice

Under IAS 12,current and deferred taxes are measured on the basis of:

• A)rates that have been enacted or substantively enacted by the balance sheet date.
• B)current rates and rates anticipated when temporary differences reverse.
• C)rates anticipated when temporary differences reverse.
• D)whether the entity provides goods or services.

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Definitions:

Economies of Scale

The financial benefits gained by businesses as a result of their operating size, where the cost for each unit produced decreases as the scale of operation grows.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specified period.

Marginal Cost

The amount spent on manufacturing one more unit of a product.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly, the seller faces no competition, as he is the sole seller of goods with no close substitute.