Deferred tax liability is normally classified as a ________ and income tax payable is classified as a ________ on the balance sheet.

Question

Quizplus · Accepted Answer

Deferred tax liability is expected to be paid beyond one year and hence classified as a long-term liability on the balance sheet. Income tax payable, on the other hand, is expected to be paid within one year and hence classified as a current liability.

Deferred Tax Liability Is Normally Classified as a ________ and Income