All of the Following Statements Are True EXCEPT

question 27

Multiple Choice

All of the following statements are true EXCEPT:

• A)deferred income taxes can be thought of as a liability.
• B)deferred income taxes arise because firms are allowed to keep two sets of financial statements; one for shareholders and one for the IRS.
• C)deferred income taxes arise because firms are allowed to keep two sets of financial statements; one for the shareholders and one for internal management.
• D)deferred income taxes are also referred to as deferred tax liabilities.

---

Definitions:

Real Defense

A legitimate legal defense that can be used to nullify a claim irrespective of the original contract's validity.

Holder in Due Course Rule

A legal principle that protects the purchaser of a negotiable instrument from certain claims and defenses in collecting the payment.

Consumer Credit Contracts

Agreements between borrowers and lenders where the former receives certain amount of credit from the latter for purchasing goods or services.

Claims and Defenses

Legal terms referring to the assertions made by a plaintiff to seek relief and the arguments put forth by a defendant to counter such claims.