Explain how treatment of gains and losses on deferred tax assets and liabilities differ between the indirect and direct methods
What will be an ideal response?
Answer: Under the direct method, in the operating activities section, income tax expense is adjusted by adding a decrease in a deferred tax liability or an increase in a deferred tax asset or subtracting an increase in a deferred tax liability or a decrease in a deferred tax asset. Under the indirect method, in the operating activities section, net income is adjusted by subtracting a decrease in a deferred tax liability or an increase in a deferred tax asset or adding an increase in a deferred tax liability or a decrease in a deferred tax asset.
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The path-goal theory of leadership identified two environmental factors that cause some leadership behaviors to be more effective than others: task structure and __________
a. situational control b. leader-member relations c. position power d. work group dynamics
The matching principle is also called the ________
A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept