Which Statement Is Correct

question 41

Multiple Choice

Which statement is correct?

• A)IFRS allows the taxes payable method because it is consistent with accrual accounting generally and with the IFRS Conceptual Framework.
• B)The taxes payable method is similar to accrual basis accounting and reflects the effect of transactions when they occur.
• C)ASPE permits the taxes payable approach because of the different costs and benefits faced by private enterprises.
• D)Recording the effect of deferred taxes is inconsistent with the definition and recognition criteria for assets and liabilities.

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Definitions:

Counterclockwise

A direction opposite to the way in which the hands of a clock move.

Perceptual Equivalence

The phenomenon where stimuli of different physical properties are perceived as identical or having the same meaning by the observer.

Mental Images

Visual representations created by the brain for simulation and recall of experiences, objects, or concepts.

Mental Processes

Internal, covert activities of our minds, such as thinking, feeling, and problem-solving.