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Some Accountants Believe That Deferred Taxes Should Not Be Recognized

question 106

Essay

Some accountants believe that deferred taxes should not be recognized for certain temporary differences. What is the conceptual basis for this argument?


Definitions:

Uninhabitable

A condition of a property that makes it unsuitable for people to live in due to risks to health and safety.

Homeowners' Policy

Insurance coverage designed to protect homeowners from financial losses related to their home, such as damages from disasters, theft, or liability for accidents.

Liability Coverage

Insurance protection that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.

Negligence

A failure to take reasonable care to avoid causing injury or loss to another person, which can lead to legal liability.

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