header bg

Scan QR code or get instant email to install app

Question:

Which of the following is most likely when a temporary difference gives rise to a deferred tax liability?

A Taxable income is lower than accounting profit.
explanation

A temporary difference gives rise to a deferred tax liability when:
• Lower expenses are recognized on the financial statements than on the tax return.
• A liability’s tax base is greater than its carrying value.
• Taxable income is lower than accounting profit.

Related Information

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

*