How are deferred tax liabilities and assets categorized on the balance sheet?
A)Capital and ordinary.
B)Current and non-current.
C)Domestic and foreign.
D)Active, portfolio, and passive.
E)Positive and negative.

Question

Quizplus · Accepted Answer

Deferred tax liabilities and assets are categorized as either current or non-current on the balance sheet, based on the timing of when the temporary differences that gave rise to the deferred tax balance are expected to reverse. Current liabilities and assets are those that are expected to reverse within one year or the operating cycle, whichever is longer. Non-current liabilities and assets are those that are expected to reverse beyond one year or the operating cycle, whichever is longer.

How Are Deferred Tax Liabilities and Assets Categorized on the Balance