An analyst has reviewed Blunt Company's note disclosures for its deferred taxes and noted a large increase in Blunt's deferred tax liability. This increase could be caused by:
A. tax law changes that limit accelerated depreciation.
B. shortening the estimated useful lives of its fixed assets.
C. GAAP warranty expenses that exceed tax warranty expenses.
D. growth in capital expenditures.
Answer: D
You might also like to view...
Which of the following best describes the fundamental, underlying reason for why there is demand for an independent auditor to report on financial statements?
A. Different interests may exist between the company preparing the statements and the parties using the statements. B. A poorly designed internal control system may be in place. C. A management fraud may exist and it is more likely to be detected by auditors if they are independent. D. A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated.
In a statement of cash flows, payments to acquire bonds or mortgages of other entities should be classified as cash outflows for
a. lending activities. b. operating activities. c. investing activities. d. financing activities.
Which is the best strategy when there is significant damage or injury?
A. no apology B. a partial apology C. a full apology D. none of these
Both real and hypothetical ______ and illustrations are used to support facts a speaker wants audience members to accept.
a. illustrations b. examples c. narratives d. facts