The only possible change in the Deferred Income Taxes account balance for a period is due to the difference between the amount of income taxes expense for that period and the amount of income taxes actually payable to the IRS for the period.

Question

Quizplus · Accepted Answer

The statement is incorrect. The Deferred Income Taxes account balance can also change due to changes in tax laws, changes in tax rates, and changes in the timing of income recognition or expense recognition.

The Only Possible Change in the Deferred Income Taxes Account