The noncurrent Deferred Tax Liability account arises because:
A)some book income will never be subject to income tax.
B)some expenses are deducted for tax purposes before they are deducted for book purposes.
C)income tax rates change from year to year.
D)the company has not paid income taxes currently due.

Question

Quizplus · Accepted Answer

Deferred tax liabilities arise when expenses are recognized in the financial statements before they are deductible for tax purposes, leading to taxable temporary differences.

The Noncurrent Deferred Tax Liability Account Arises Because