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When the Balance Sheet Approach to Tax Effect Accounting Is

Question 19

Multiple Choice

When the balance sheet approach to tax effect accounting is adopted:

A) the income tax expense is measured by the aggregate change in the amounts of deferred tax assets and deferred tax liabilities over the reporting period
B) the income tax expense can be greater than, or less than, the income tax payable for the reporting period
C) the current tax expense is measured by the aggregate change in the amounts of deferred tax assets and deferred tax liabilities over the reporting period
D) there will always be recognised deferred tax assets and deferred tax liabilities

Correct Answer: