If the tax base of an asset exceeds the asset"s carrying value and a reversal is expected in the future:
A: a deferred tax asset is created.
B: a deferred tax liability is created.
C: neither a deferred tax asset nor a deferred tax liability is created.
A: a deferred tax asset is created.
B: a deferred tax liability is created.
C: neither a deferred tax asset nor a deferred tax liability is created.
举一反三
- Which of the following statements is FALSE（） A: A deferred tax asset results when pretax income exceeds taxable income. B: Taxable income is a term used for tax reporting, while pretax income is used with financial reporting. C: When a deferred tax liability reverses, it means that a cash outflow for taxes is occurring.
- A tax loss carry forward is best described as the:（） A: net taxable loss that can be used to refund paid taxes from the previous year. B: difference of deferred tax liabilities and deferred tax assets. C: net taxable loss that can be used to reduce taxable income in the future.
- The purchase of office supplies on account will: （ ）. A: Increase an asset and decrease a liability B: Increase one asset and decrease another asset C: Increase an asset and increase a liability D: Decrease an asset and decrease a liability
- Which of following tax is the most common tax of China? A: Excise Tax B: Tobacco Tax C: Value Added Tax D: Individual Income Tax
- The act of taking a net asset position or a net liability position in some asset class is referred to as ____.