Which of the Following Statements Concerning the Classification of Deferred

question 67

Multiple Choice

Which of the following statements concerning the classification of deferred tax assets and liabilities is true?

• A) A deferred tax asset is classified as noncurrent if the company expects the future tax benefit to be received more than 12 months from the balance sheet date.
• B) A deferred tax asset related to inventory capitalization is classified as noncurrent if the company uses a FIFO accounting method and the inventory to which the deferred tax asset relates will not be treated as sold within 12 months from the balance sheet date.
• C) A deferred tax asset related to a bad debt reserve is classified as current if the related accounts receivable is classified as a current asset.
• D) All deferred tax assets and liabilities are treated as noncurrent beginning in 2016.

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Definitions:

Vibes

Informal for the emotional signals a person or the atmosphere of a place sends out to others.

Public Commitments

Acts of declaring one's intentions or actions in a public manner to ensure accountability.

Conservation

The action of preserving, protecting, or restoring the natural environment and wildlife.

Prompts

Cues or signals that initiate, guide, or augment action or thought processes.