Deferred tax liabilities are ________.
A) expected increases in future income taxes due to past transactions
B) expected decreases in future income taxes due to past transactions
C) expected increases in future income taxes due to future transactions
D) expected decreases in future income taxes due to future transactions

Question

Quizplus · Accepted Answer

Deferred tax liabilities represent the increase in the amount of tax payable in future years as a result of temporary differences between the carrying amount of assets and liabilities in the financial statements and their tax bases. Therefore, they are expected increases in future income taxes due to past transactions.

Deferred Tax Liabilities Are ________