The journal entry for deferred income taxes would include a:
A)debit to income tax expense.
B)a debit to income tax payable.
C)a debit to cash.
D)a debit to accounts receivable.

Question

Quizplus · Accepted Answer

Deferred income taxes are recognized in the accounting records when there is a difference between the tax base of assets or liabilities and their carrying amount in the financial statements. This difference results in a future tax payment or refund. A debit to income tax expense reflects the increase in future tax liabilities or decrease in future tax assets, adjusting the income tax expense on the income statement to match the taxes that will be paid or saved in the future due to timing differences.

The Journal Entry for Deferred Income Taxes Would Include A