Which of the Following Statements Is True as to GAAP

Multiple Choice

Which of the following statements is true as to GAAP regarding accounting for income taxes, and its use of the asset and liability approach?

A) Considerable flexibility is permitted in the balance sheet classification of deferred tax amounts.
B) The approach recognizes the time value of money.
C) The approach is consistent with a balance sheet emphasis of U.S. GAAP and the International Financial Reporting Standards (IFRS) .
D) The approach is consistent with cash basis accounting.