Which of the following explain why it is important to determine the period in which income is recognized?
A)Marginal tax rates may be different in different periods.
B)Tax laws may change
C)The time value of money
D)All of the above are explanations

Question

Quizplus · Accepted Answer

All of the choices provided are valid reasons for determining the period in which income is recognized. Marginal tax rates and tax laws can change between periods, affecting the amount of tax owed. The time value of money means that the value of money received at different times can vary, impacting financial decisions and reporting.

Which of the Following Explain Why It Is Important to Determine