Deferred Tax Would Normally Arise from Which of the Following

question 18

Multiple Choice

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

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

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Definitions:

Federal Government

The national government of a federal state, which holds the central political authority over the collection of states or provinces.

Progressive Taxes

A taxing mechanism where the tax rate increases as the taxable amount grows, resulting in individuals with higher incomes paying a higher percentage of their income in taxes.

Direct Taxes

Taxes levied directly on individuals' or entities' income or wealth, such as income tax and property tax.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, the disabled, and children of deceased workers.