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A company has a temporary difference due to doubtful accounts (i.e., bad debt expense). For fiscal year 2012, its Income Tax Payable was $10,000 less than its Income Tax Expense.
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Scenario: Alice Yu, as an employee of a large multi-national IT company, could see that the company’s processes were harming customers’ businesses and in the long term the IT company. Alice’s boss was happy for this to continue even after it had been brought to his attention many times as it did not affect his position. Alice told her boss that she had heard that a customer was going to sue for damages (although though this was a lie). Alice’s boss started to fix the problem immediately.
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Central banks have perfect control over the money supply in their economies.
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