Under the Discrete Approach to the Preparation of Interim,which of the Following

question 36

Multiple Choice

Under the discrete approach to the preparation of interim,which of the following statements is true?

• A)Annual expenses are treated as a proportionate part of annual earnings.
• B)Income taxes are treated as a cumulative expense.
• C)Temporary differences giving rise to future income taxes are allocated to interim periods.
• D)Expenses are allocated in a way to show the organization's likely annualized costs.

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Definitions:

Assets And Liabilities

Assets are resources owned by a company that have economic value, while liabilities are obligations the company owes to others, reflecting the company's debts or financial responsibilities.

Unearned Rent Revenue

Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.

Wages Payable

Wages payable is a liability account that records the amounts owed to employees for work that has been performed but not yet paid.

Capital Lease Contracts

Lease agreements that transfer substantially all risks and rewards of ownership from the lessor to the lessee, effectively treated as a purchase.