A Company That Has Both Short-Term Deferred Tax Assets of $22,000,long-Term

question 13

Multiple Choice

A company that has both short-term deferred tax assets of $22,000,long-term deferred tax liabilities of $36,000,short-term deferred tax liabilities of $51,000 and short-term deferred tax assets of $60,000 should report

• A)A current asset for $22,000,a current liability for $36,000,a long-term asset for $60,000,and a long-term liability for $51,000.
• B)A current liability for $14,000 and a long-term asset for $9,000.
• C)A current asset for $5,000.
• D)A current liability for $14,000,a long-term asset for $60,000,and a long-term liability for $51,000.

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Definitions:

Financial Statement

Reports outlining the financial standing of a business, incorporating the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Classification of accounts where permanent accounts (real accounts) represent ongoing items that are not closed at the end of the accounting period, whereas temporary accounts (nominal accounts) are closed.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, ensuring accuracy of the figures.

Post-closing Trial Balance

The trial balance prepared after closing entries have been posted to ensure that debits and credits still balance, marking the end of an accounting period.