A Deferred Tax Liability

question 127

Multiple Choice

A deferred tax liability:

• A)is only disclosed in the notes to the financial statements.
• B)is recorded in a contra-liability account.
• C)represents income tax amounts that are deferred to future years because of temporary differences between GAAP rules and IRS rules.
• D)is never a current liability.

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Definitions:

Small Failures

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Uncertainty

The lack of clarity about future events that can cause entrepreneurs to take unreasonable actions.

Pivot

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