Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)If the foreign tax rate exceeds the U.S.tax rate,companies must pay this higher rate on foreign earnings.
• B)U.S.tax policy allows companies to apply the part of the tax credit that is not used to offset domestic taxes owed,so this extra tax credit is not wasted.
• C)If the foreign tax rate is less than the U.S.tax rate,the company pays total taxes equal to the U.S.tax rate on its foreign earnings.
• D)A full tax credit is given for foreign taxes paid up to the amount of the U.S.tax liability.

---

Definitions:

Emotional Impact

The intense effect an event, experience, or information can have on a person’s feelings or emotions.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Recall

The mental process of retrieving information from the past, which can vary in accuracy and detail depending on numerous factors, such as the context and the method of encoding.

Recognition

The cognitive process of identifying previously encountered objects, ideas, or situations.