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I need help with a Accounting question. All explanations and answers will be used to help me learn.
1. Identify the objectives of accounting for income taxes.
2. What is the rationale for the argument that long-term deferred tax liabilities should be excluded from liabilities when computing the debt-to-equity ratio?
3. What would be the effect on Macy's debt-to-equity ratio of excluding deferred tax liabilities from its calculation? What would be the percentage change?
4. What might be the rationale for not excluding long-term deferred tax liabilities from liabilities when computing the debt-to-equity ratio?
Below is the powerpoint attached to answer the questions.
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