Which of the Following Is/are True Regarding U

question 22

Multiple Choice

Which of the following is/are true regarding U.S.GAAP and IFRS requirements for income tax accounting for financial reporting purposes?

• A)A permanent difference never affects income tax expense for any period.
• B)A temporary difference that implies a future tax deduction gives rise to a deferred tax asset.
• C)A temporary difference that implies a future increase in income tax payable gives rise to a deferred tax liability.
• D)The accountant computes income tax expense using pretax amounts for financial reporting.
• E)all of the above

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Definitions:

Net Profit

The financial gain or loss a business makes after subtracting all expenses, taxes, and costs from total revenue.

Shadow Price

In linear programming, it refers to the value that represents the change in the optimal objective function value per unit increase in the right-hand side of a constraint.

Finishing Constraint

A limitation or requirement in the production process that must be met before a product can be completed and delivered.

Total Profit

Total profit is the total income of a business after subtracting all expenses.