Under the liability method for calculating future taxes, the future tax liability is based on:
A)current tax rates.
B)known future tax rates.
C)average historical tax rates.
D)effective tax rates.

Question

Quizplus · Accepted Answer

Under the liability method for calculating future taxes, the future tax liability is based on known future tax rates, as this method accounts for the effects of temporary differences that will reverse in the future at the enacted tax rates.

Under the Liability Method for Calculating Future Taxes, the Future