The income statement approach to measuring income tax expense

Select one:

a. is required by FASB Statement No. 109.

b. compares revenues and expenses recognized for book and tax purposes, eliminates permanent differences, and computes income tax expense based on book income before taxes excluding permanent differences.

c. computes income tax expense as a difference between the tax basis of an asset or a liability and its reported amount in the [balance sheet] that will result in taxable or deductible amounts in some future year(s) when the reported amounts of assets are recovered and the reported amounts of liabilities are settled.

d. is required by IAS 12.

The accounting equation is represented by Assets= Liabilities + Stockholders Equity which of the following would cause a change in the stockholders equity accounts:

Select one:

a. Sale of Land for cash and a note receivable for the balance

b. Collection of an account receivable

c. Purchased an asset for cash and 10,000 shares of preferred stock

d. None of the above

Reporting financial assets and liabilities at fair values also is referred to as:

Select one:

a. historical cost.

b. acquisition cost.

c. mark-to-market.

d. mortgage-backed cost