Which of the Following Taxes Would Not Be Accounted for Under

question 69

Multiple Choice

Which of the following taxes would not be accounted for under ASC 740?

• A) Income taxes paid to the German government.
• B) Income taxes paid to the U.S. government.
• C) Value-added taxes paid to the Swiss government.
• D) Income taxes paid to the City of New York.

---

Definitions:

Profit-Sharing Plans

Programs that distribute a portion of an organization’s profits to its employees, aligning employees' interests with the financial success of the company.

Free Rider

An individual who benefits from resources, goods, or services without paying for them, often discussed in the context of public goods or collective efforts.

Long-Term Incentives

Compensation rewards designed to motivate and retain employees over an extended period, often in the form of stock options, equity, or performance plans.

Deferred Profit-Sharing Plans

A type of retirement plan in which employees receive a share of the company's profits at a later date, usually upon retirement.