4. The deferred income tax liability:
Select one: a. Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules. b. Is a contingent liability. c. Can result in a deferred income tax asset. d. Is never recorded. e. Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.
7. The percent of accounts receivable method for bad debts estimation uses only income statement account balances to estimate bad debts.
8. The consistency concept:
Select one: a. Requires a company to consistently apply the same accounting method of inventory valuation, an exception being when a change from one method to another will improve its financial reporting. b. Requires a company to use one method of inventory valuation exclusively. c. Requires that all companies in the same industry use the same accounting methods of inventory valuation. d. Is also called the full disclosure principle. e. Is also called the matching principle.
4 a. Represents income tax payments that are deferred until future years because of temporary... View the full answer