USGAAP and IFRS Require Complex Procedures in Accounting for Income

question 48

Multiple Choice

U.S.GAAP and IFRS require complex procedures in accounting for income taxes.A deferred tax asset arises when

• A)a firm recognizes an expense earlier for financial reporting than for tax reporting.
• B)a firm recognizes an expense earlier for tax reporting than for financial reporting.
• C)a firm recognizes a revenue earlier for financial reporting than for tax reporting.
• D)a firm recognizes a revenue earlier for tax reporting than for financial reporting.
• E)none of the above

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Definitions:

Competition

The activity or condition of striving to gain superiority over others in the same field or market.

Collaboration

Working together with one or more individuals or groups to achieve a common goal or complete a task.

Distributive Negotiation

A negotiation strategy that views the resources being negotiated as fixed and limited, leading to a win-lose scenario between the parties.

Zero-Sum

A situation in competitive contexts where one party's gain is exactly balanced by another party's loss.