Which Statement Is Correct

question 38

Multiple Choice

Which statement is correct?

• A)The deferral and accrual methods produce the same tax expense when tax rates are constant.
• B)The deferral method applies new tax rates to accumulated tax balances.
• C)The accrual method applies new tax rates to only to current year's income.
• D)The deferral and accrual methods produce the same tax expense when tax rates are falling.

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Definitions:

Medicare

In the United States, Medicare is a government-run health insurance scheme designed for individuals who are 65 years of age or older, along with certain younger individuals who have disabilities.

Employee Benefits Expense

Costs incurred by a company to provide benefits to its employees, such as health insurance, retirement plans, and sick leave.

Medical Care

The provision of services by healthcare professionals to maintain, improve, or manage the health of individuals.

Insurance Benefits

Payments or services provided by insurance companies to policyholders when certain events or circumstances occur, outlined in an insurance policy.