Taxes that are anticipated to be paid in future years are best described as:
A) prepaid taxes.
B) taxes payable.
C) long-term taxes.
D) deferred income tax.

Question

Quizplus · Accepted Answer

Deferred income tax represents taxes that are anticipated to be paid in future years, not immediately, due to temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements.

Taxes That Are Anticipated to Be Paid in Future Years