CFA Practice Question

CFA Practice Question

Adjustments to deferred tax accounts due to changes in tax rates or tax laws are:
A. directly charged to the retained earnings account.
B. included in the income from continuing operations.
C. treated as permanent differences and treated as a separate component of equity.
Explanation: Adjustments to deferred tax accounts due to changes in tax rates or tax laws are neither extraordinary or treated as permanent differences. They are part of income from continuing operations.

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