According to AASB 112,the Prepayment of Rent of $2000 That

question 8

Multiple Choice

According to AASB 112,the prepayment of rent of $2000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to:

• A) a Deferred Tax Liability of $600
• B) a Deferred Tax Liability of $600 and a credit to Income Tax Payable of $600
• C) a Deferred Tax Asset of $600
• D) neither a Deferred Tax Liability nor a Deferred Tax Asset

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve representing a normal distribution of data around the mean.

Population

A total set of individuals, items, or data from which a statistical sample is drawn.

Normally Distributed

A statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.