Deferred Tax Would Normally Arise from Which of the Following

question 90

Multiple Choice

Deferred tax would normally arise from which of the following situations?

• A)When a company makes a different choice for its tax return versus its book net profit
• B)When a company withholds income tax from its employees' payroll
• C)When a company pays off all of its debts at the end of the year
• D)When a company pays income tax quarterly versus yearly

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as market-clearing price.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that is demanded.

Inferior Good

An economic term for a good whose demand decreases as the consumer's income increases, contrasting with normal goods.