Which of the Following Statements Best Describes the Objective(s)of ASC

question 102

Multiple Choice

Which of the following statements best describes the objective(s) of ASC 740?

• A)To compute a corporation's current income tax liability or benefit.
• B)To recognize deferred tax liabilities and assets.
• C)To report permanent differences in the balance sheet.
• D)To both compute a corporation's current income tax liability or benefit and to recognize deferred tax liabilities and assets.

---

Definitions:

Time

A constant progression in which events pass from the past through the present to the future.

Currency

A system of money in general use in a particular country or region for the exchange of goods and services.

Conditional Logic

A form of logic used in programming and mathematics that performs different actions or outcomes based on whether a specified condition is true or false.

Passing Score

The minimum score required on a test or examination to be considered as having passed or achieved the required standard.