Which Statement Is CORRECT Regarding Accounting for Income Taxes in a Financial

question 14

Multiple Choice

Which statement is CORRECT regarding accounting for income taxes in a financial statement?

• A) The income tax provision only includes the taxes paid for that reporting period.
• B) Items of income and expense are treated the same for book and tax purposes as reflected in the financial statement.
• C) Accounting for income taxes does not incorporate the deferred tax model.
• D) Accounting for income taxes must reflect the differences between financial statement and tax return reporting.

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Definitions:

Range

The difference between the highest and lowest values in a set of data.

Stacked Bar Chart

A bar chart in which each bar is broken into rectangular segments of a different color showing the relative frequency of each class in a manner similar to a pie chart.

Stem-and-Leaf Display

A method of displaying quantitative data in a graphical format, similar to a histogram, to show distribution properties.