The Attitude of the Financial Accounting Standards Board Toward Deferred

question 92

Multiple Choice

The attitude of the Financial Accounting Standards Board toward deferred tax liabilities is that they are

• A) an amount that results in a future obligation and meets the definition of a liability.
• B) a bookkeeping item that is used merely to maintain equality of the accounting equation.
• C) not true liabilities because the balance increases every year.
• D) not payable in the immediate future so it not necessary to record them.

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Definitions:

Absolute Zero

The lowest possible temperature where nothing could be colder and no heat energy remains in a substance, equivalent to -273.15°C or 0 Kelvin.

Nominal Data

A type of data that categorizes variables without a natural order or ranking among the categories.

Continuous Data

Data that can take any value within a given range, often representing measurements on a continuous scale.

Standard Deviation

A statistic that measures the amount of variation or dispersion of a set of values.