Unformatted text preview: b. The tax rate reflected on a company’s income statement.
c. The tax rate a company actually pays to the IRS.
d. The tax rate a company pays in the state in which it is incorporated.
S MC-4 Defining deferred tax assets
Which of the following best describes a deferred tax asset?
a. An asset created when a company purchases tax-free bonds.
b. An asset created by deferring a tax benefit to a future period.
c. An asset created when a company prepays its income taxes to the IRS.
d. An asset created by deferred a tax obligation to a future period.
S MC-5 Defining a defined benefit pension plan
Which of the following best describes a defined benefit pension plan?
a. A plan that provides medical benefits to retired employees.
b. A plan that requires a company to contribute defined amount to a
c. A plan that defines the benefits available to employees upon retirement.
d. The type of plan being offered to employees by most new companies.
S MC-6 Defining an underfunded pension plan
Which of the following best describes an underfunded pension pla...
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- Spring '12
- Balance Sheet, Deferred tax, Generally Accepted Accounting Principles, Income tax in the United States