ACC 302 Ch 16 NO

ACC 302 Ch 16 NO - ACC 302 Chapter 16 Quiz Multiple Choice...

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ACC 302 Chapter 16 Quiz Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following creates a permanent difference between financial income and taxable income? a. Interest received on municipal bonds b. Completed contract method of recognizing construction revenue c. Unearned rent revenue d. Accelerated cost recovery on plant and equipment ____ 2. The result of interperiod income tax allocation is that a. wide fluctuations in a company's tax liability payments are eliminated. b. tax expense shown in the income statement is equal to the deferred taxes shown on the balance sheet. c. tax liability shown in the balance sheet is equal to the deferred taxes shown on the previ- ous year's balance sheet plus the income tax expense shown on the income statement. d. tax expense shown on the income statement is equal to income taxes payable for the cur- rent year plus or minus the change in the deferred tax asset or liability balances for the year. ____ 3. An example of a "deductible temporary difference" occurs when a. the installment sales method is used for tax purposes, but the accrual method of recogniz- ing sales revenue is used for financial reporting purposes. b.
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ACC 302 Ch 16 NO - ACC 302 Chapter 16 Quiz Multiple Choice...

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