Which of the Following Statements Concerning Deferred Taxes Is Correct

question 40

Multiple Choice

Which of the following statements concerning deferred taxes is correct?

• A) Deferred taxes will not be found in asset section of the balance sheet.
• B) Deferred taxes arise from permanent differences in GAAP and tax accounting.
• C) Deferred taxes will only decrease when a cash payment is made.
• D) Deferred taxes arising from the depreciation of a specific asset will ultimately reduce to zero as the item is depreciated.

Understand the fundamentals and importance of research methodologies and data gathering techniques.

Identify and differentiate between primary and secondary data sources.

Comprehend the basic structure and characteristics of reports and proposals within organizational contexts.

Recognize the ethical considerations in research, including the avoidance of plagiarism.

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Definitions:

Semiannual Interest

Interest that is both computed and disbursed semi-annually on an investment or loan.

Bond Discount

The financial disparity that occurs when a bond is sold for an amount below its stated face value, comparing its selling price to its face value.

Interest Method

A financial calculation used to determine the amount of interest due or earned over a specific period of time, considering factors like principal, rate, and time.

Annuity

An investment vehicle that provides a consistent series of payments to a person, mainly serving as a source of income for those who have retired.