Question
How do firms classify deferred tax accounts? OA. For simplicity, deferred tax accounts are all classified as noncurrent. Deferred tax assets should be netted
How do firms classify deferred tax accounts? OA. For simplicity, deferred tax accounts are all classified as noncurrent. Deferred tax assets should be netted with deferred tax liabilities, as long as the right to offset exists. OB. For simplicity, deferred tax accounts are all classified as current. Deferred tax assets should be netted with deferred tax liabilities, as long as the right to offset exists. OC. An individual deferred tax asset or liability is classified as current or noncurrent based on the classification of the underlying asset or liability. OD. An individual deferred tax asset or liability is classified as current or noncurrent based on its expected reversal date. If the expected reversal date is within one year from the balance sheet date, it is current. If the expected reversal date is more than one year from the balance sheet date, it is noncurrent.
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