Which of the Following Best Describes the Focus of ASC

question 4

Multiple Choice

Which of the following best describes the focus of ASC 740?

• A)ASC 740 uses an "asset and liability approach" that focuses on the balance sheet.
• B)ASC 740 uses an "income and expense approach" that focuses on the income statement.
• C)ASC 740 uses a "taxes paid or refunded approach" that focuses on the statement of cash flows.
• D)ASC 740 uses a "permanent differences approach" that focuses on the effective tax rate reported in the income tax note to the financial statements.

---

Definitions:

Dest

Short for "destination," often used in programming or networking to refer to the target location for data storage or transmission.

Math Instruction

A command or operation in computer programming and digital logic that performs mathematical calculations.

Logically True

A condition or statement that is valid or correct according to logical or Boolean principles.

SUB Instruction

An operation in programming and computing that subtracts one value from another or more values and returns the result.