Which type of book/tax differences are accounted for as deferred tax assets or deferred tax liabilities?
A)Timing differences
B)Permanent differences
C)All deferrals for a cash basis taxpayer
D)All of the above

Question

Quizplus · Accepted Answer

Timing differences are the only type of book/tax differences that result in deferred tax assets or liabilities. Permanent differences do not reverse over time, thus do not create deferred taxes.

Which Type of Book/tax Differences Are Accounted for as Deferred