Which one is not correct in the context of tax accounting? corporate income tax

ID: 2591806 • Letter: W

Question

Which one is not correct in the context of tax accounting?

corporate income tax is an expense, not a distribution of profits to the government.

deferred tax assets might be resulted from loss carrybacks.

non taxable expenses cause permanent differences between pretax accounting income and taxable income.

deferred tax liability might be resulted when tax expense on income statement is less than tax payment based on tax code.

corporate income tax is an expense, not a distribution of profits to the government.

deferred tax assets might be resulted from loss carrybacks.

non taxable expenses cause permanent differences between pretax accounting income and taxable income.

deferred tax liability might be resulted when tax expense on income statement is less than tax payment based on tax code.

Ans D) deferred tax liability might be resulted when tax expense on income statement is less than tax payment based on tax code.

Correct Answer: deferred tax liability might be resulted when tax expense on income statement is more than tax payment based on tax code.

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