A deferred income tax liability arises when

Name: A deferred income tax liability arises when
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A deferred income tax liability arises when there is a difference between financial reporting requirements and income tax filing requirements. This leads to temporary differences in the recognition of revenue or expenses, resulting in either deferred tax assets or liabilities. An expense not being deductible for tax purposes would lead to a deferred tax asset rather than a liability.

A Deferred Income Tax Liability Arises When