On December 31,2011,XYZ Inc

question 72

Multiple Choice

On December 31,2011,XYZ Inc.has an account receivable of $2,000 for consulting fees it earned during the year.Consulting revenues are only taxable when collected.XYZ normally receives payment for the services rendered one month after the client is invoiced.Assuming a 20% tax rate,these revenues shall result in:

• A)a deferred tax asset of $400.
• B)a deferred tax liability of $400.
• C)a deferred tax asset of $2,000.
• D)a deferred tax liability of $2,000.

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Definitions:

Range of Motion

The entire scope of movement a joint can achieve, often measured by its flexion and extension limits.

Slight Tension

A minimal amount of stress or pressure applied to a muscle or group of muscles, often during stretching or exercise.

Mild Tightness

A slight, often non-painful sensation of tension in muscles or joints that can be relieved through stretching.

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens or irritants, characterized by redness, swelling, and pain.