_____ 16.A deferred tax liability can be the result of both timing and permanent differences between revenue recognition for tax and financial accounting.

Name: _____ 16.A deferred tax liability can be the result of both timing and permanent differences between revenue recognition for tax and financial accounting.
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Question

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A deferred tax liability arises only from timing differences, not permanent differences, as timing differences will reverse in the future, affecting taxable income.

_____ 16A Deferred Tax Liability Can Be the Result of Both