A Change in Tax Rates Does Not Require Any Change

question 73

True/False

A change in tax rates does not require any change in the carrying amount of deferred tax assets and deferred tax liabilities.

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Definitions:

Voting Shares

Stocks that grant the holder the right to vote on corporate matters at shareholders' meetings.

Poison Pill

a defense strategy used by companies to prevent or discourage unwanted takeover attempts by making the company less attractive to the acquirer.

Market Price

The existing rate at which an asset or service can be traded or acquired in the market.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and in the interest of the company.