Which of the Following Is an Exception as to When

question 84

Multiple Choice

Which of the following is an exception as to when a secondary obligation needs to be in writing?

• A)The delineated rule
• B)The resulting-fact rule
• C)The main-purpose rule
• D)The personal-obligation standard
• E)The primary-purpose rule

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Definitions:

Deferred Tax Liabilities

Tax liabilities that emerge from the temporary discrepancies between the accounting and tax valuation of assets and liabilities.

Tax Law

Tax law encompasses the rules, policies, and regulations that oversee the tax process for individuals, businesses, and other entities, determining how taxes are calculated, collected, and managed.

Liability Approach

A method in accounting where emphasis is placed on accruing all expected future costs and obligations.

Income Tax Expense

The total amount of income tax a company owes to the government for a specified period, reflected in its financial statements.