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Accounting
At the end of the current year, Newsmax Incorporated has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a:  a- Current deferred tax asset b- Non-current deferred tax asset c- Current deferred tax liability d- Non-current deferred tax liability

At the end of the current year, Newsmax Incorporated has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a:  a- Current deferred tax asset b- Non-current deferred tax asset c- Current deferred tax liability d- Non-current deferred tax liability

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the current year, Newsmax Incorporated has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a: 

a- Current deferred tax asset

b- Non-current deferred tax asset

c- Current deferred tax liability

d- Non-current deferred tax liability

 

 
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