Which of the Following Statements Is Not Correct in Relation

question 19

Multiple Choice

Which of the following statements is not correct in relation to tax rate changes?

• A) An increase in tax rates will create an expense where an entity has deferred tax liabilities.
• B) Across time it is likely that governments will change tax rates.
• C) A decrease in tax rates will create an income where an entity has deferred tax assets.
• D) Changes tax rates will have implications for the value attributed to pre-existing deferred tax assets
• E) Deferred tax arising from changes to tax rates is recognised in either the income statement or to equity (if they had been previously charged to equity).

Understand the concept of the business entity and its implications for accounting practices.

Differentiate between types of businesses and their operational activities.

Comprehend the fundamental accounting concepts including the business entity concept and the cost concept.

Recognize the significance and application of Generally Accepted Accounting Principles (GAAP).

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Definitions:

Job Analyses

The process of examining and detailing specific job responsibilities, requirements, and the importance of these elements in the performance of the job.

Human Resource Professionals

Specialists in managing and developing an organization's workforce, including recruitment, training, benefits administration, and compliance with labor laws.

Managerial Positions

Jobs that involve overseeing and directing the functions and activities of employees, departments, or organizations.

Time-And-Motion Studies

The analysis of work processes to improve efficiency by reducing wasted motions and optimizing task performance.