If a Company Provides for Tax at Year-End,the Effect on the Accounting

question 32

Multiple Choice

If a company provides for tax at year-end,the effect on the accounting equation is that:

• A) an asset increases and another asset decreases
• B) an asset decreases and owners' equity decreases
• C) an asset decreases and a liability decreases
• D) a liability increases and owners' equity decreases.

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Definitions:

Not-For-Profit

An organization that operates for purposes other than making profit, often focused on social, educational, or charitable objectives, re-investing excess revenue in its mission.

Critical Social Theory

A framework for critiquing and changing society as a whole, focusing on the structures that create power imbalances, oppression, and inequalities.

Anti-Oppression Approach

A framework or strategy aimed at recognizing, addressing, and dismantling oppression and inequalities within society, fostering equality and justice for all groups.

Social Injustice Theory

A framework for understanding and analyzing social conditions that create and perpetuate inequality, discrimination, and unfair treatment of individuals or groups in society.