Question 14 Which method or methods does the FRF for SMEs allow for reporting income taxes?

• a) The taxes payable method only
• b) The deferred tax method only
• c) The pretax income method or the taxes payable method
• d) The deferred tax method or the taxes payable method

Question 15 Which of the following statements best describes the revenue standard in the FRF for SMEs?

• a) The revenue standard in the FRF for SMEs is longer in length than the new revenue standard of the FASB, but easier to apply.
• b) The revenue standard in the FRF for SMEs is almost identical to the FASB's new revenue standard.
• c) LIke the new FASB revenue standard, the revenue standard in the FRF for SMEs covers a wide range of circumstances.
• d) The revenue standard in the FRF for SMEs leaves less to management's discretion than is allowed by the FASB's new revenue standard.