Tax Preference Items Can Be Either Positive or Negative

question 58

True/False

Tax preference items can be either positive or negative.

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Definitions:

Classified Balance Sheets

Balance sheets that organize assets and liabilities into subcategories, such as current and non-current, to provide a clearer financial picture.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate.

Intangible Assets

Non-physical assets with value to a business, such as trademarks, patents, goodwill, and copyrights.

Accruals

Accounting adjustments for revenues that have been earned or expenses that have been incurred but have not yet been recorded through a cash transaction.