When a company adjusts the balance of a deferred tax account to reflect changes in their tax rate, this impacts ________.

Name: When a company adjusts the balance of a deferred tax account to reflect changes in their tax rate, this impacts ________.
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Question

Quizplus · Accepted Answer

Adjusting the deferred tax account affects both the income tax expense and the effective tax rate, as it reflects changes in future tax liabilities or assets due to the change in tax rate.

When a Company Adjusts the Balance of a Deferred Tax