"Financial Report":Income statement

B is correct. During the process data phase, an analyst will produce a variety of reports and documents based on the information collected. These may include common-size statements, ratios and graphs, forecasts, adjusted statements, and analytical results. 

A is incorrect. The statement of purpose is prepared during the articulation phase. 

C is incorrect. The statement of cash flows is a source of information for the analyst.

C is correct. Income tax expense reported on the income statement = Income tax payable + Net changes in the deferred tax assets and deferred tax liabilities. The change in the net deferred tax liability is a $50 increase (indicating that the income tax expense is $50 in excess of the income tax payable, or current income tax expense) and represents an increase in the expense. Therefore, the income tax expense = $1,000 + $50 = $1,050. 

A is incorrect. It is the income tax payable plus the net deferred tax liability, not just the change in the net liability: $1,000 + 250 =$1,250. 

B is incorrect. Incorrectly subtracts the net deferred tax liability: $950 = $1,000 – $50.