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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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Milder Form

A less severe or intense version of something.

Familism

A social structure where the needs and interests of the family are more important and valued over the needs of any of the individual family members.

Family Relationships

The dynamic interactions and bonds between family members, including those formed by blood, marriage, or adoption, which influence individual behavior and development.