Deferred Tax Is an Amount That Reconciles the Differences Between

question 20

True/False

Deferred tax is an amount that reconciles the differences between the income for financial purposes with the income reported for tax purposes.In most cases,it is a long-term liability.

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Definitions:

Equity Carrying Amount

A rephrased new definition: The recorded book value of an equity investment in the financial statements, reflecting adjustments for profits, losses, and other relevant transactions.

Investment

The allocation of resources, such as time, money, or effort, in the expectation of generating a future benefit or profit.

Equity Carrying Amount

The net amount at which an asset or liability is reported in the balance sheet, often referring to the value of an investment in another entity after adjustments.

Net Assets

The total assets of an entity minus its total liabilities, representing the owner's or shareholder's equity in the entity.