Which of the following accounts cannot be altered by a consolidation adjusting entry:
A) income tax expense
B) income tax payable
C) deferred tax asset.
D) deferred tax asset

Question

Quizplus · Accepted Answer

Income tax payable is a liability account that reflects the amount of taxes owed to the taxing authority, and this account cannot be altered by a consolidation adjusting entry since it represents an actual liability owed by the company. The other accounts listed (income tax expense, deferred tax asset, and deferred tax liability) may be affected by consolidation adjusting entries. Note that choice D is a duplicate answer option.

Which of the Following Accounts Cannot Be Altered by a Consolidation