Which of the Following Statements Is True with Respect to Adjusting

question 1

Multiple Choice

Which of the following statements is true with respect to adjusting the deferred tax account on consolidation?

• A)Deferred taxes only need to be adjusted for unrealized profits in inventory at the end of the year.
• B)Deferred taxes only need to be adjusted for unrealized profits in inventory at the beginning of the year.
• C)Deferred taxes need to be adjusted for unrealized profits in inventory at both the beginning and the end of the year.
• D)Deferred taxes do not need to be adjusted for unrealized profits.

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Definitions:

Urine

A liquid by-product of metabolism in humans and many animals, excreted by the kidneys and stored in the bladder until elimination.

Serum Protein

Proteins present in blood serum, which include antibodies, albumin, and other globulins, playing roles in clotting, immune system function, and other processes.

Urine

Urine is a liquid waste product of the body that is excreted by the kidneys through the process of urination.

IVP

Intravenous pyelogram, a radiographic test that uses a contrast material to visualize and assess the kidneys, ureters, and bladder.