Which of the Following Statements Best Describes the ASC 740

question 119

Multiple Choice

Which of the following statements best describes the ASC 740 rules related to the disclosure of the components of deferred tax assets and liabilities in the company's income tax note?

• A)A publicly traded company should disclose the approximate "tax effect" (dollar amounts)of all of the components of its deferred tax assets and liabilities in a footnote to the financial statements.
• B)A publicly traded company should disclose the approximate "tax effect" (dollar amounts)of only those components of its deferred tax assets and liabilities that give rise to a "significant" portion of net deferred tax liabilities and deferred tax assets in a footnote to the financial statements.
• C)A privately held company should disclose the approximate "tax effect" (dollar amounts)of all of the components of its deferred tax assets and liabilities in a footnote to the financial statements.
• D)A privately held company should disclose the approximate "tax effect" (dollar amounts)of only those components of its deferred tax assets and liabilities that give rise to a "significant" portion of net deferred tax liabilities and deferred tax assets in a footnote to the financial statements.

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Definitions:

Gate Control Theory

A theory proposing that there are neural "gates" in the spinal cord that control the transmission of pain signals to the brain.

Specificity Theory

A concept in pain management suggesting that pain signals are transmitted through specific receptors and neural pathways.

Delayed Gratification

The ability to resist the temptation of an immediate reward in preference for a later reward.

Substantia Gelatinosa

A region in the dorsal horn of the spinal cord involved in processing pain and temperature.