1. A __________ will result in a future refund of taxes or a tax savings if ther

ID: 2501375 • Letter: 1

Question

1. A __________ will result in a future refund of taxes or a tax savings if there are temporary differences in the current period.

a. Deferred tax expense

b. Deferred tax liability

c. None of these answers are correct

d. Deferred revenue

e. Deferred tax asset

With respect to temporary tax differences, which of the following statements is false?

a. Stock-based compensation expense is an example of an item that could result in taxable amounts in future years.

b. A liability may be recognized for expenses or losses that will result in deductible amounts in future years when the liability is settled.

c. A temporary tax difference can result when revenues or gains are taxable before they are recognized in financial income.

d. An asset may be recognized for revenues or gains that will result in taxable amounts in future years when the asset is recovered.

e. None of these answers are correct.

1) e) deferred tax asset

2) e) none of these are correct

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