An Increase in a Deferred Tax Liability Is Recognized When

question 11

Multiple Choice

An increase in a deferred tax liability is recognized when

• A)the tax accountant omits taxable revenue from the tax returns.
• B)net income measured under GAAP is greater than taxable income on tax returns because of temporary timing differences.
• C)the amount of tax paid to the government is more than that calculated by the accountant on the company's tax return.
• D)a tax audit by the IRS causes an increase in taxes due from a previous year's tax return.

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