_____ Under APB Opinion No. 23, parent companies must provide income taxes on earnings of their foreign subsidiaries in a manner most analogous to
A) The cash basis.
B) The accrual basis.
C) A partial accrual basis.
D) The equity method.
E) The cost method.

Question

Quizplus · Accepted Answer

Under APB Opinion No. 23, parent companies are required to provide income taxes on the earnings of their foreign subsidiaries using a partial accrual basis, recognizing deferred tax liabilities only when it is apparent that the earnings will be repatriated.