Which of the Following Statements Is Correct Regarding Deferred Taxes

question 41

Multiple Choice

Which of the following statements is correct regarding deferred taxes under IFRS?

• A)Income tax payable plus or minus the change in deferred income taxes equals income tax expense.
• B)The current portion of income tax expense is the amount of change in deferred taxes related to the current period.
• C)In computing income tax expense, a company deducts an increase in a deferred tax liability to income tax payable.
• D)All of the choices are correct.

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Definitions:

Tradable Pollution Rights

A system that allows companies or countries to buy and sell allowances to emit a certain amount of pollution, aimed at reducing overall emissions.

Gap Between the Rich

Refers to the widening economic disparity between those with the most wealth and those with the least within a society or globally.

Poor

Lacking in material possessions or financial wealth, often leading to difficulty in achieving a standard of living considered comfortable or normal in a society.

Since 1960

Referencing a period beginning in the year 1960 to the present or a specified end point, often used to indicate the duration of a particular trend or changes over time.