When the Carrying Amount of an Asset Exceeds the Tax

question 48

Multiple Choice

When the carrying amount of an asset exceeds the tax base,there will be a deferred tax ...... (a) .....; because the taxation payments have effectively been ............(b) :

• A) (a) Asset; (b) made in advance of recognising the expense.
• B) (a) Asset; (b) deferred to future periods.
• C) (a) Liability; (b) made in advance of recognising the expense.
• D) (a) Liability; (b) deferred to future periods.
• E) (a) Reserve; (b) deferred to future periods.

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Definitions:

Balanced Scorecard

A strategic planning and management system that uses a mix of financial and non-financial measures to evaluate organizational performance.

Decision Management

Those aspects of the decision process where managers either initiate or implement decisions.