A Company's Income Statement Reported Net Income of $80,000 During

question 48

Multiple Choice

A company's income statement reported net income of $80,000 during 2010.The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2011.Which of the following statements is incorrect assuming a 35% tax rate?

• A)Income tax expense on the income statement exceeds the tax liability to the IRS.
• B)The $6,000 of revenue creates a deferred tax liability.
• C)A $2,100 deferred tax liability is reported as of December 31, 2010.
• D)Income tax expense on the income statement is $25,900.

Understand the concepts of hypothesis testing, including the null and alternative hypotheses.

Apply and interpret confidence intervals for different statistical parameters.

Understand the conditions for using the t-distribution and calculate degrees of freedom in hypothesis testing.

Understand the concept and application of matched and independent samples in hypothesis testing.