The Classification of a Deferred Tax Asset as Current or Long-Term

question 68

True/False

The classification of a deferred tax asset as current or long-term usually depends on the balance sheet classification of the asset or liability to which it relates.

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Definitions:

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses and costs.

Indirect NCI

Is a concept related to non-controlling interest (NCI) that involves the indirect ownership stake of a parent company in a subsidiary through its interest in another subsidiary.

Direct NCI

Refers to the non-controlling interest that is directly attributable to a parent company's ownership in a subsidiary.

Economic Entity

An organization or unit in society that has the ability to conduct economic activities, such as businesses or governments.