Deferring income taxes by using legal accounting methods is one strategy to permanently improve cash flow.

Name: Deferring income taxes by using legal accounting methods is one strategy to permanently improve cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deferring income taxes means delaying payment of taxes to a later date using legal methods such as tax credits, deductions, and deferral of income. This can help a company to improve its cash flow in the short-term, but it does not necessarily lead to permanent cash flow improvement.

Deferring Income Taxes by Using Legal Accounting Methods Is One