The Deferred Income Tax Liability

question 144

Multiple Choice

The deferred income tax liability:

• A) Represents income tax payments that are deferred until future years because of temporary differences between GAAP rules and tax accounting rules.
• B) Is a contingent liability.
• C) Can result in a deferred income tax asset.
• D) Is never recorded.
• E) Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.

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Definitions:

Long-lasting Conflict

A prolonged struggle or dispute that persists over an extended period of time, often involving armed combat.

Clinton

Referring to Bill Clinton, the 42nd President of the United States, who served from 1993 to 2001, or Hillary Clinton, a prominent American politician and former Secretary of State.

Israeli-Palestine

Refers to the ongoing conflict between Israelis and Palestinians over land and statehood, with deep historical, political, and social roots.

Airstrikes on Al Qaeda

Military attacks from the air directed at Al Qaeda targets, often involving drones or manned aircraft, as part of counter-terrorism efforts.