PRESENTATION IN THE FINANCIAL STATEMENTS

Select the alternative that best matches each of the following 10 accounts in relation to their presentation in the financial statements and their normal balance.

Assume that the DTL and DTA accounts are associated with the same taxing business segment and the same taxing jurisdiction.

Some of the alternatives on the right are going to be superfluous.

Deferred Tax Asset due to Net Operating Loss Income Tax Benefit from Carryforward Income Tax Expense

Negative Adjustment due to Changes in Accounting Principle Net Deferred Tax Liability Allowance to Reduce DTA Gross DTL Income Tax Refund Receivable Positive Prior Period Adjustment Net Deferred Tax Asset

a. Equity account in the Statement of Situation with normal balance DR.

b. Debt Account in the Statement of Financial Position with normal balance DR

c.DR to the opening balance of retained earnings

d. Debt account in the statement of position with normal balance CR

f.Active Account in the Statement of Financial Position with normal Balance CR

g. Asset Account with normal Balance DR but it is reported in the notes h. CR adjustment to the initial balance of Retained Earnings

i. Active Account in the Statement of Financial Position with normal Balance DR

j.Equity Account in the statement of position with normal balance CR

k. income and expense statement account with normal balance DR

L. against Asset account with normal CR balance but it is reported in the notes

M. Debt account with normal balance CR but it is reported in the notes

N. Income and expense statement account with normal balance CR