Which of the Following Is the Most Likely Item to Result

question 58

Multiple Choice

Which of the following is the most likely item to result in a deferred tax asset?

• A) Using accelerated depreciation for tax purposes but straight-line depreciation for accounting purposes
• B) Using the completed-contract method of recognizing construction revenue tax purposes,but using percentage-of-completion method for financial reporting purposes
• C) Prepaid expenses
• D) Unearned revenues

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Definitions:

Transnational Companies

Businesses that operate across national borders, maintaining a central headquarters but distributing production and services in multiple countries.

Centralization

The organizational structure where decision-making authority is concentrated at the top levels of management.

Subsidiary Human Capital

the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to a subsidiary organization.

Transnational Strategy

A business approach where a company seeks to achieve global reach, efficiency, and local responsiveness simultaneously.