Acc Quiz 3 - ACC 326 Quiz #3 (2/14/08) Name: ` Class time:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 326 Spring 2008 Quiz #3 (2/14/08) Name: ` Class time: Statement of Cash Flows Income Taxes 1. Indicate whether each of the following statements is True or False. (10 points) a. Companies determine taxable income by applying principles set forth by the FASB. False b. Taxable income will differ from Pretaz financial income due to temporary differences and permanent differences. True c. Penalties and fines are examples of temporary differences which will result in deferred tax asset. False d. Permanent differences create deferred tax assets and deferred tax liabilities. False e. Cash flow from operating activities will be greater under the indirect method than it would be when computed using the direct method. False f. Under US GAAP dividends received are classified as financing inflows and Interest paid as financing outflows on the statement of cash flows. False (Bonus 2 points) 2. In 2007 a tornado completely destroyed a building to Holland Corp. The building cost $100,000 and had accumulated depreciation of $48,000 at the time
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/03/2008 for the course ACC 326 taught by Professor Atiase during the Spring '08 term at University of Texas.

Page1 / 2

Acc Quiz 3 - ACC 326 Quiz #3 (2/14/08) Name: ` Class time:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online