Question # $1$

What is true income for tax purposes is higher than accounting income?

A$)$ Actual Income taxes payable will be lower than accounting income tax expense.

B$)$ Accounting income tax expense is the same as actual income tax payable

C$)$ Actual income tax payable will be the same as accounting income tax expense

D$)$ Actual income tax payable will be higher than accounting income tax expense.

Question # $2$

What will happen if a company increases the amount of inventory it carries?

A$)$ Net income will decrease.

B$)$ CFO will decrease.

C$)$ CFO will increase.

D$)$ Net income will increase.