[APPENDIX] Deferred Income Taxes Is a Balance Sheet Item for Generic

question 91

Multiple Choice

[APPENDIX] Deferred income taxes is a balance sheet item for Generic Products Company.How would it most likely be classified on the balance sheet?

• A)Owners' equity
• B)Long-term liability
• C)Expense
• D)Contra liability

---

Definitions:

Contributes Capital

The act of providing financial resources or assets to a business or investment with the expectation of gaining a return.

Limited Partnership

A business partnership with one or more general partners who manage the business and assume liability, and one or more limited partners who contribute capital and face limited liability.

General Partner

A type of owner in a partnership who has unlimited personal liability and who is actively involved in managing the business.

Tax Reasons

Considerations related to the management of tax liabilities and strategic financial planning to minimize taxes owed.