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:

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners and entitling them to a portion of the company's profits.

Corporate Bond

A type of debt security issued by a corporation to raise capital, promising to pay back the face value, along with interest, to the bondholders.

Primary Market

The market in which financial institutions aid in the sale of new securities.

New Issues

Refers to securities that are being offered to the public for the first time, such as through an initial public offering (IPO).