Which of the Following Statements Regarding Temporary Differences Is False

question 127

Multiple Choice

Which of the following statements regarding temporary differences is false?

• A)Temporary differences can result in deferred liabilities and deferred assets.
• B)Deferred tax liabilities are found on the balance sheets of nearly every company.
• C)For most companies,the primary source of deferred taxes is timing differences related to depreciation.
• D)The deferred tax liability equals the temporary difference times the tax rate.
• E)Temporary differences result in the cancellation of taxes.