The Presentation of the Combination or "Offsetting" of Noncurrent Deferred

question 75

Multiple Choice

The presentation of the combination or "offsetting" of noncurrent deferred tax assets and liabilities is

• A) not permitted by the FASB because of the separate identification principle.
• B) not permitted by the FASB because of the close relationship between deferred tax assets and liabilities.
• C) required by the FASB to avoid the detailed analysis necessary for more refined classification methods.
• D) required by the FASB because of the close relationship between deferred tax assets and liabilities.

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Definitions:

Straight-Line Depreciation

An approach to apportion the expense of a tangible resource over its effective life period in consistent annual installments.