Answer:
Unearned subscription
2016 deferred tax asset
2017 deferred tax liability
2018 deferred tax asset
Explanation:
The balance sheet account is unearned subscription which is a liability account,
It is a liability because the company already collected cass but is yet to provide the necessary services paid for the by the customers.
Earned subscription account is sales revenue account which is a profit and loss item.
($'000) 2016 2017 2018
taxable income $290 $220 $260
Pretax accounting income ($250) ($240) ($230)
Deferred tax asset/(liability) $40 ($20) $30
When taxable income is more than pretax accounting income, the resulting effect is a deferred tax asset which shows that tax was charged on a higher taxable income which provides tax relief in future.
When pretax accounting income is higher,it implies that tax was calculated on a lower taxable income and that more tax would be incurred in the future when the temporary difference reverses.
The amount spent by similar companies in the same industry
Answer: <u>The correct answer is D).</u>
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Explanation: A blue ocean strategy is used to gain a broad and durable competitive advantage by abandoning existing markets and inventing a new market segment in which competitors are minimal and allow the company to meet a new demand.