Deferred taxes arise due to temporary timing differences in recognizing items for tax and financial reporting purposes.

Question

Quizplus · Accepted Answer

This statement is true. Deferred taxes occur when there is a difference in timing between when an item is recognized for tax purposes and when it is recognized for financial reporting purposes. This can lead to either a deferred tax liability or a deferred tax asset.

Deferred Taxes Arise Due to Temporary Timing Differences in Recognizing