Quiz – Current Assets/Liabilities
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
Suppose current assets is greater than current liabilities, when prepaying an expense at the end of the year it will effect what?
Suppose current assets is greater than current liabilities, when prepaying an expense at the end of the year it will effect what?
Temporary differences originate in a single period and then reverse in future periods.
The creation of deferred tax liabilities results from expenditures that are currently deducted in the tax return but not included in the income statement until future years.
Deferred tax assets and liabilities represent the tax impact of temporary differences between the financial carrying value and the tax basis of an asset or liability.
Deferred tax assets are recognized due to revenue from installment sales of property that was reported on prior financial statements and is currently reported in the tax return.
Deferred tax assets are created as a result of collecting rent in advance.
MACRS depreciation commonly results in the creation of deferred tax liabilities in the initial years of an asset’s life.
An unrealized gain from marking an investment to fair value commonly create a deferred tax asset.
Deferred tax assets typically arise from future taxable amounts.
Deferred tax asset classification depends on benefit realization time. True or false?