Which of the Following Is Characteristic of Deferred Income Tax

question 93

Multiple Choice

Which of the following is characteristic of deferred income tax payable?

• A)Deferred income tax payable is often generated due to timing differences.
• B)Deferred income tax payable may be either a current or long-term liability
• C)Deferred income tax payable represents the deferred payment of taxes to later years through tax planning techniques.
• D)All of these are characteristics of deferred income tax payable.

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Definitions:

Direct Combination Costs

Expenses directly associated with the execution of a business combination, such as legal fees, consulting fees, and other administrative costs.

Goodwill

An intangible asset representing the future economic benefits arising from assets that are not capable of being individually identified and separately recognized.

Acquisition

The process of acquiring control over another corporation through purchase or stock exchange.

Cash

A medium of exchange in the form of currency, used to conduct transactions and settle debts.