Which of the following is not a proper description with respect to the financial accounting and reporting of income taxes?
A. A net operating loss carryforward does not have any impact on income tax expense for the year the loss occurs.
B. A permanent difference does not create a deferred tax asset or liability.
C. Income tax expense changes during the year that future tax rate increases are enacted.
D. An originating temporary difference will eventually create a reversing temporary difference.
Answer: A
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______ change involves small improvements to existing products and processes to improve efficiency or make products or services more attractive to customers.
a. Reactive b. Proactive c. Incremental d. Discontinuous
Accountants record assets at
a. acquisition cost b. the present value of the future net cash flows based on estimated receipts and operating expenses c. current economic value d. current replacement cost e. appraised value
The theory of constraints can
a. Identify what limitations exist with raw material suppliers. b. Follows a methodology similar to linear programming. c. Show where bottlenecks exist and sets the limit of output to these bottlenecks. d. Be ignored since it assumes too many estimates in the production cycle.
At Jeep, teams of workers make their own job assignments, plan their own work, control their material and inventory needs, and select new team members. This is an example of job
A. switching. B. redesign. C. enrichment. D. sharing. E. rotation.