A Deferred Tax Liability That Is Due in 5 Years

question 121

Multiple Choice

A deferred tax liability that is due in 5 years is classified as a

• A)long-term liability.
• B)current liability.
• C)stockholders' equity account.
• D)long-term asset.
• E)current asset.

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Definitions:

Total Assets Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.

Sales

Revenue generated from the sale of goods or services.

Total Assets

The sum of all current and long-term assets owned by a company, reflected on the balance sheet.

Net Sales

The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.