Deferred tax would normally arise from which of the following situations?
A)When a company makes a different choice for its tax return versus its book net profit
B)When a company withholds income tax from its employees' payroll
C)When a company pays off all of its debts at the end of the year
D)When a company pays income tax quarterly versus yearly

Question

Quizplus · Accepted Answer

Deferred tax arises when there is a difference between the accounting treatment of an item in the financial statements and its treatment for tax purposes, such as when a company makes different choices for its tax return versus its book net profit.

Deferred Tax Would Normally Arise from Which of the Following