Deferred income taxes is a balance sheet item for Iowa Products Company. How would it most likely be classified on the balance sheet?

Question

Quizplus · Accepted Answer

Deferred income taxes are typically classified as a long-term liability on the balance sheet, as they represent taxes that are owed but not yet paid, often due to timing differences in recognizing income and expenses for tax and accounting purposes.

Deferred Income Taxes Is a Balance Sheet Item for Iowa