Which of the Following Statements Best Describes the Disclosure of a Company's

question 91

Multiple Choice

Which of the following statements best describes the disclosure of a company's deferred tax assets and liabilities beginning in 2016?

• A) Deferred tax assets and liabilities must be separately disclosed in the balance sheet.
• B) All deferred tax assets and liabilities are treated as noncurrent and can be netted and disclosed as one aggregate amount on the balance sheet.
• C) Current deferred tax assets and liabilities and noncurrent deferred tax assets and liabilities can always be netted on the balance sheet.
• D) All deferred tax assets and liabilities are treated as noncurrent and can be netted on the balance sheet only if they arise in the same tax jurisdiction.

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Definitions:

Compound-Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

Guaranteed Interest Rates

Interest rates promised to remain constant over a defined period, often associated with savings instruments like fixed deposits.

Maturity Value

The amount payable to an investor at the end of a fixed term investment.

Financial Planning

The process of creating strategies for managing finances to achieve personal financial goals.