Which of the Following Is Not an Argument That an Advocate

question 41

Multiple Choice

Which of the following is not an argument that an advocate of nonallocation of deferred taxes might use to support his/her position?

• A) Income taxes result only from taxable income.
• B) Income taxes are an expense of doing business and should be treated the same as other expenses of doing business under accrual accounting.
• C) Income taxes are not levied on individual items of income or expense.
• D) The current provision for income taxes is a better predictor of future cash flows than is income tax expense that includes deferred taxes.

---

Definitions:

Correlation Coefficient

A measure that determines the degree to which two variables' movements are associated.

True Score

The true score is a theoretical concept in psychometrics representing the actual measure of the trait or characteristic being assessed, without the distortion of measurement error.

Measurement Error

The difference between the true value and the measured value due to inaccuracies or flaws in the measurement process or instrument.

Measure

To ascertain the size, amount, or degree of something using a standard unit or instrument.