The attitude of the Financial Accounting Standards Board toward deferred tax liabilities is that they are
A)an amount that results in a future obligation and meets the definition of a liability.
B)a bookkeeping item that is used merely to maintain equality of the accounting equation.
C)not true liabilities because the balance increases every year.
D)not payable in the immediate future so it is not necessary to record them.

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board considers deferred tax liabilities to be an amount that results in a future obligation and meets the definition of a liability. This is because these liabilities have the potential to increase a company's tax obligation in the future, creating an obligation that must be recognized on the balance sheet.

The Attitude of the Financial Accounting Standards Board Toward Deferred