Match Each of the Following Terms with the Appropriate Description

question 173

Multiple Choice

Match each of the following terms with the appropriate description in the state income tax formula. Apply the
UDITPA rules in your responses.
-Dividend income from P & G stock held.

• A)Addition modification
• B)Subtraction modification
• C)No modification

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Definitions:

Accounting Equation

The fundamental principle of accounting stating that Assets = Liabilities + Equity.

Measurement Principle

A financial accounting principle that determines the specific basis (historical cost or fair value) on which assets and liabilities are recorded in the financial statements.

Actual Cost

The incurred cost that reflects the real financial expenditure on a project, purchase, or activity.

Accounting Equation

The fundamental equation of double-entry bookkeeping, represented as Assets = Liabilities + Equity.