Deferred income taxes arise when accounting methods used for financial reporting differ from those used on the income tax return.

Question

Quizplus · Accepted Answer

Deferred income taxes are temporary differences between the amount of income taxes payable reported on the income tax return and the amount of income taxes payable reported in the financial statements due to differing accounting methods. Therefore, the statement is true.

Deferred Income Taxes Arise When Accounting Methods Used for Financial