19.3: Noncurrent Assets and Liabilities

Question 1

Impairment losses reflect …

Answer 1

An unanticipated decline in value.

Question 2

Deferred tax assets - a balance sheet asset that arises when …

Answer 2

An excess amount is paid for income taxes relative to accounting profit.

**The taxable income is higher than accounting profit and income tax payable exceeds tax expense.

Question 3

Deferred tax liabilities - a balance sheet liability that arises when …

Answer 3

A deficit amount is paid for income taxes relative to accounting profit.

**The taxable income is less than the accounting profit and income tax payable is less than tax expense.