After Applying the Balance Sheet Method to Determine the GAAP

question 32

Essay

After applying the balance sheet method to determine the GAAP income tax expense of Poppert Inc., the following account balances are found. Determine the balance sheet presentation of these amounts. Hint: Which of the accounts should you combine for the final balance sheet disclosure? $$\begin{array} { l c } \text { Deferred tax assets, current } & \$ 500,000 \\\text { Deferred tax assets, noncurrent } & 145,000 \\\text { Deferred tax liabilities, current } & 80,000 \\\text { Deferred tax liabilities, noncurrent } & 310,000\end{array}$$

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Sales In Receivables

Likely refers to the concept of "Accounts Receivables" which are amounts owed by customers for goods or services delivered on credit.

Decimal Place

The position of a number to the right of the decimal point; each position represents a power of ten.

Comparative Income Statement

A financial statement that compares income, expenses, and net profit over multiple periods to assess performance.