Deferred income taxes arise from

Name: Deferred income taxes arise from
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deferred income taxes arise from temporary differences between the amount of income for tax purposes and the amount of income recognized in financial statements due to differences in accounting standards and IRS rules. This creates the need for future income tax payments or refunds, resulting in a deferred income tax liability or asset. The other choices do not accurately describe the nature of deferred income taxes.

Deferred Income Taxes Arise from