At what point in time are deferred tax accounting adjustments recorded?
A) As each transaction arises or is incurred;
B) As the cash flows from each transaction occur;
C) At the end of each month;
D) At the reporting date.

Question

Quizplus · Accepted Answer

Deferred tax accounting adjustments are recorded at the reporting date as they reflect the differences between the tax base and accounting base of assets and liabilities at that point in time. These differences are temporary and are expected to reverse in future periods, resulting in taxable or deductible amounts. Therefore, it is appropriate to record these adjustments at the end of the reporting period when financial statements are prepared.

At What Point in Time Are Deferred Tax Accounting Adjustments