From an Economic Standpoint, It Appears Reasonable That Deferred Tax

question 19

True/False

From an economic standpoint, it appears reasonable that deferred tax liabilities should be shown at their present value.

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Definitions:

Production Inefficiency

A situation where a firm or economy is not producing at the lowest possible cost or maximally utilizing its resources, leading to waste or lost potential output.

Opportunity Cost

Sacrificing potential opportunities from a range of alternatives by settling on one.

Present Consumption

The portion of current income or resources that is used for consumption, rather than saving or investing.

Capital

Resources or assets used in the production of goods and services, such as machinery, buildings, and equipment.