Future income tax obligations should be reported on which of the following?
A)A corporation's income tax return.
B)A corporation's statement of financial position.
C)A corporation's income statement.
D)Statement of changes in equity.

Question

Quizplus · Accepted Answer

Future income tax obligations represent a liability for the corporation that will require payment in the future. Therefore, it should be reported on the corporation's statement of financial position, also known as the balance sheet. It reflects the amount of taxes that the corporation will have to pay in future periods due to differences in accounting and tax rules.

Future Income Tax Obligations Should Be Reported on Which of the Following