Shank Corporation Uses a Different Depreciation Method for Its Income

question 115

Multiple Choice

Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a

• A) current asset.
• B) long-term liability.
• C) current liability.
• D) long-term asset.

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Definitions:

WWII

The Second World War, a global conflict that lasted from 1939 to 1945, involving most of the world's nations.

Behavior Modification

Behavior modification involves altering behavior through systematic techniques based on learning principles, used in therapeutic and educational settings.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Austrian Psychiatrist

Refers to a psychiatrist from Austria, which could historically include figures like Sigmund Freud who is renowned for his contributions to psychoanalysis.