CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

An analyst should classify a deferred tax liability as ______ if the liability is expected to reverse with subsequent tax payment.

A. an asset
B. a liability
C. equity

Correct Answer: B

If the liability is not expected to reverse, there is no expectation of a cash outflow and the liability should be treated as equity.

User Contributed Comments 3

User Comment
Shaan23 Thank god. Worst section I've had soo far.
farhan92 got to love how the last questions are always easy..kinda makes you think you've mastered the section!
kingirm To classify a liability as a liability ... haha)))
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