A deferred tax asset represents the:
a. decrease in taxes saved in future years as a result of a deductible temporary differences
b. decrease in taxes payable in future years as a result of deductible temporary differences
c. increase in taxes payable in future years as a result of deductible temporary differences
d. increase in taxes saved in future years as a result of deductible temporary differences
Ans: d. increase in taxes saved in future years as a result of deductible temporary differences
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The Carter family has been the successful owner of a manufacturing company for over 50 years. The company has always performed better than expected and was projected to grow for years to come. To help with this growth, the Carters decided to hire a CEO who is not from the family, the first time in its history. After the hire, the performance of the company shifts for the worse, and there is a separation of ownership and managerial control. What factors should the Carter family change?
a. The Carters should appoint a family member as CEO, as research shows that family-owned firms perform better when a member of the family is the CEO. b. The CEO should resign, as he or she is not performing in the interest of the shareholders. c. The CEO should diversify the company, as it has reached the end of its growth projection. d. The Carters should align the goals of the family and the CEO
Pearson Hardman Inc. currently has 2 million shares outstanding and earnings per share (EPS) of $6. After a 3-for-2 split, the shares outstanding and EPS will be:
A) 1.33 M Shares outstanding, $9 EPS B) 1.50 M Shares outstanding, $6 EPS C) 2.00 M Shares outstanding, $6 EPS D) 3.00 M Shares outstanding, $4 EPS E) 3.67 M Shares outstanding, $4 EPS