Which of the Following Statements Concerning the Classification of Deferred

question 66

Multiple Choice

Which of the following statements concerning the classification of deferred tax assets and liabilities is false?

• A)A deferred tax asset is classified as noncurrent if the company expects the future tax benefit to be received more than 12 months from the balance sheet date.
• B)A deferred tax asset related to a bad debt reserve is classified as noncurrent if the company expects the bad debt to be charged off more than 12 months from the balance sheet date.
• C)A deferred tax asset related to a bad debt reserve is classified as current if the related accounts receivable is classified as a current asset.
• D)A deferred tax asset related to inventory capitalization is classified as noncurrent if the company uses a FIFO accounting method and the inventory to which the deferred tax asset relates will not be treated as sold within 12 months from the balance sheet datE.A deferred tax asset is classified based on the classification of the asset to which it relates.Accounts receivable is treated as a current asset.

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Definitions:

Gendered Institution

A concept referring to how gender roles and expectations are embedded in the social structures, policies, and practices of institutions, affecting individuals' roles and opportunities.

Cultural Dominance

The predominance of one culture over others, often leading to the subjugation or marginalization of minority cultures within a society.

Egalitarian

Describing a belief in or the practice of equal rights, opportunities, and treatment for all people, regardless of their background or status.

Ethnic Settings

Social environments marked by a specific cultural or racial identity.