Question
DATE ACCOUNTS DEBIT CREDIT 12/31/14 Income Tax Expense $500,000 Cash $475,000 Deferred Income Tax Asset $25,000 Which of the options provided would cause this journal
| DATE | ACCOUNTS | DEBIT | CREDIT |
|---|---|---|---|
| 12/31/14 | Income Tax Expense | $500,000 | |
| Cash | $475,000 | ||
| Deferred Income Tax Asset | $25,000 |
Which of the options provided would cause this journal entry to be made?
The business recognizes $475,000 of Tax Expense for the year.
The business recognizes $500,000 of Tax Expense but pays less as a temporary timing difference reverses.
The business accrues $25,000 of Tax Expense.
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The Volunteers Audit Guide For Churches And Other Non Profits A Step By Step Workbook For Internal Reviews Of Non Profit Organizations
Authors: Edd Breeden
1st Edition
1079582401, 978-1079582406
