Which of the Following Statements Best Describes the ASC 740

question 119

Multiple Choice

Which of the following statements best describes the ASC 740 rules related to the disclosure of the components of deferred tax assets and liabilities in the company's income tax note?

• A)A publicly traded company should disclose the approximate "tax effect" (dollar amounts)of all of the components of its deferred tax assets and liabilities in a footnote to the financial statements.
• B)A publicly traded company should disclose the approximate "tax effect" (dollar amounts)of only those components of its deferred tax assets and liabilities that give rise to a "significant" portion of net deferred tax liabilities and deferred tax assets in a footnote to the financial statements.
• C)A privately held company should disclose the approximate "tax effect" (dollar amounts)of all of the components of its deferred tax assets and liabilities in a footnote to the financial statements.
• D)A privately held company should disclose the approximate "tax effect" (dollar amounts)of only those components of its deferred tax assets and liabilities that give rise to a "significant" portion of net deferred tax liabilities and deferred tax assets in a footnote to the financial statements.

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Definitions:

Antagonist

A substance that acts against and blocks an action, such as a drug that binds to a receptor without activating it and thereby prevents a biological response.

Memory Loss

The inability to remember information or events, which can be a temporary condition or a symptom of neurological diseases.

Monoamine

A category of neurotransmitter that includes serotonin, dopamine, and norepinephrine, important for regulating mood and behavior.

Norepinephrine

A neurotransmitter and hormone involved in the body’s fight or flight response, affecting attention and responding actions.