A Company's Income Tax Expense Is Calculated on the Basis

question 166

Multiple Choice

A company's income tax expense is calculated on the basis of book income, but the income tax payable amount is based on the:

• A) sales tax rate applied to sales revenues.
• B) amount of payroll tax that has not been paid yet.
• C) amount of taxable income, as calculated on the income tax return.
• D) amount of dividends paid to shareholders.

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Definitions:

Inhibitory Postsynaptic Potential

A decrease in the potential of the postsynaptic neuronal membrane, making it less likely to generate an action potential.

Resting Potential

Resting potential refers to the electric potential difference across the neuronal membrane when the neuron is not actively sending a signal.

Absolute Refractory Period

The period immediately following the firing of a nerve fiber when it cannot be stimulated to fire again, no matter how strong the incoming signal.

Action Potential

A momentary change in electrical potential on the surface of a neuron that occurs when it is stimulated and is capable of transmitting a signal along the neuron.