A Forum in Which Suppliers and Demanders of Funds Make

question 78

Multiple Choice

A forum in which suppliers and demanders of funds make financial transactions is called a financial

• A)institution.
• B)bank.
• C)instrument.
• D)market.

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Definitions:

Temporary Difference

A discrepancy between the tax basis of an asset or liability and its carrying amount on the balance sheet, which will eventually settle and affect taxable income.

Book Income

A company's income as reported in its financial statements, representing the difference between revenues and expenses.

Income Tax Rate

The portion of a person's or company's earnings that is handed over to the state in the form of taxes.

Deferred Income Tax Liability

A tax obligation that a company owes but has not yet paid, resulting from temporary timing differences between its accounting earnings and its taxable income.