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NEW QUESTION: 1
Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis
financial statements:
A. Contain no disclosures about capital and operating lease transactions.
B. Recognize certain revenues and expenses in different reporting periods.
C. Do not include nontaxable revenues and nondeductible expenses in determining income.
D. Include detailed information about current and deferred income tax liabilities.
Answer: B
Explanation:
Choice "d" is correct. Income tax-basis financial statements recognize events when taxable income or
deductible expenses are recognized on the entity's tax return. Non-taxable income and non-deductible
expenses are shown on the financial statement and included in the determination of income (and become
M-1 adjustments to arrive at taxable income). Please Note: This question appeared in the releases for
1 999 in FARE; however, it may also apply to OCBOA financial statements discussed in the Auditing
textbook. The question did not apply well to any FARE CSO line item, so we included it here so that you
could read the Explanation: and learn from it.

NEW QUESTION: 2
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 3
A prospect is considering a single chassis PureFlex.
Which of the following business pressures could be reduced with the installation of PureFlex?
A. Reduce cost management of zBX, System x, and Power servers
B. Top-of-rack (TOR) switches flattens the network to reduce management costs
C. Employing more cost effective open products
D. Deploying applications faster for quicker time to market
Answer: D