Why are liabilities easy to value?

a) Because their value is usually what they owe.

b) Because liabilities are constantly changing

c) Because both assets and liabilities are easy to value

d) Because they are at cost

What causes most deferred taxes?

a) Using straight-line depreciation for financial statements and MACRS for income tax purposes.

b) Using MACRS for the financial statements and straight-line depreciation for income tax purposes.

c) Deferred taxes have nothing to do with depreciation.

d) Using depreciation for the purposes of increasing income taxes.