When Recognizing Deferred Tax Assets and Liabilities,the Income Statement Approach

question 52

Multiple Choice

When recognizing deferred tax assets and liabilities,the income statement approach and the balance sheet approach yield identical results:

• A) when enacted tax rates applicable to future periods do not change.
• B) when the firm recognizes no valuation allowance on deferred tax assets.
• C) Both (a) and (b) are correct.
• D) None of these answers is correct.

---

Definitions:

Family Life Cycle

The series of stages through which a family progresses over time, including birth, marriage, parenting, and aging.

Launching Children

The process of preparing and supporting children to leave home and function independently as adults.

Same-sex

Pertains to relationships or attractions between individuals of the same gender.

Cohabiting

The act of living together in a domestic partnership without being legally married.