ASC 740 Permits a Corporation to Net Its Current and Long-Term

question 69

True/False

ASC 740 permits a corporation to net its current and long-term deferred tax liabilities.
Only like-holding period deferred tax accounts from the same jurisdiction can be netted.

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Definitions:

Income Statement Accounts

Categories within an income statement that record different types of revenue, expenses, gains, and losses, affecting the net income of a business.

Temporary Accounts

Accounts in the general ledger that are closed at the end of the accounting period, transferring their balances to permanent accounts.

Chart of Accounts

A systematic listing of all accounts used in the ledger of an organization, categorized by assets, liabilities, equity, revenue, and expenses.

Re-sort List

The action of organizing or rearranging items in a list according to a different criterion or sequence.