Which one of the following transactions would result in the creation of a noncurrent deferred tax liability?
A) interest received on municipal bonds
B) a contingent liability expensed in the current period that is expected to require a cash payment in three years
C) royalties received in advance that are taxable when received, but that will be earned within the next three months
D) using an accelerated depreciation method for income tax purposes and the straight-line method for financial reporting purposes
D
You might also like to view...
In terms of B2B products, computers and printers are examples of ________
A) component parts B) capital equipment C) accessory equipment D) operating supplies E) specialized services
) How many units should Alver Inc. order in order to minimize annual ordering and carrying cost?
The injection molding department of Alver Inc. uses an average of 40 pounds of a special powder per day. The plant operates 250 days per year. The daily usage of the powder is normally distributed with a standard deviation of 5 pounds per day. The lead time to obtain the powder from a supplier is 9 days. The annual holding cost is $2 per unit and the cost of ordering the powder is $50.
Corporations today outnumber unincorporated business associations
Indicate whether the statement is true or false
In Squish La Fish v. Thomco Specialty Products, involving an adhesive that did not work as hoped in product packaging, the company that bought the adhesive sued the seller for a tort called:
a. defamation b. fraud c. intentional misrepresentation d. negligent misrepresentation e. none of the other choices