Answer:
The correct answer is letter "B": A decrease in a deferred tax asset.
Explanation:
A Deferred Tax Asset is an asset on a balance sheet of a business that can be used to lower taxable income. It is the opposite of deferred tax liability that reflects something that will increase income taxes. Both are listed under current assets on the Balance Sheet.
The deferred tax asset will be generated when recorded income taxes owed are higher than the income taxes paid to the Government.
Thus, <em>a decrease in deferred tax is recorded when a company has collected revenue in advance for a good not delivered or a service not rendered yet.</em>
Answer:
The correct answer is letter "D": smaller, community banks.
Explanation:
The Great Recession is the economic fall that occurred between 2007 and 2009 as a result of the housing bubble burst in the U.S. During this period many well-known firms such as <em>Chrysler, General Motors, </em>and <em>Lehman Brothers</em> filed for bankruptcy. However, not all the business experienced a downturn.
A study conducted by the <em>Federal Reserve Bank of St. Louis</em> (2013) indicates that 417 <em>banks and thrift institutions</em> failed between 2006 and 2011 but 702 <em>small community banks</em> reported total assets of around $10 billion by allowing individuals to benefit from loans. Banks and thrift institutions were too conservative in loans during the Great Recession which was interpreted in lower revenues.
