30. A financial analyst would classify deferred tax liabilities as equity (versus a liability) when:
A. the deferred tax liabilities are expected to decline over time.
B. the deferred tax liabilities are predominantly comprised of permanent differences.
C. a change in tax law may result in the deferred taxes never being paid by the company.
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Ans: C.
If a change in tax law or a change in operations results in deferred taxes never being paid by the company, the deferred tax liabilities would be treated as equity by the financial analyst.
A is incorrect. A financial analyst would treat deferred tax liabilities that are expected to decline over time as a legitimate liability.
B is incorrect. Permanent differences are not included in deferred taxes. |
发表于 2013-9-23 15:06
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