The deferred income tax liability: A. Is recorded whether or not the difference

Question

The deferred income tax liability:

A. Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.

B. Can result in a deferred income tax asset.

C. Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government.

D. Is a contingent liability.

E. Is never recorded.

A. Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.

B. Can result in a deferred income tax asset.

C. Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government.

D. Is a contingent liability.

E. Is never recorded.

Explanation / Answer

Deffered income tax liability is that tax liabity if income tax payable is lower than income tax payable that is called deffered income tax liability.

so answer is C. Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government.

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