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:

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The initial thoughts or judgments formed about someone or something at the beginning of an encounter, often lasting and difficult to change.

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