Deferred Tax Liabilities Occur When Expenses Are Deductible for Book

question 40

True/False

Deferred tax liabilities occur when expenses are deductible for book purposes before tax purposes.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 that aims to protect investors by making corporate disclosures more reliable and accurate through the establishment of new or enhanced standards for all U.S. public company boards, management, and public accounting firms.

Internal Control Procedures

These are policies and procedures implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Public Companies

Companies that issue publicly traded debt or equity securities.

Sarbanes-Oxley Act

U.S. legislation passed in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.