Deferred Income Tax Account - CFA Level 1 Exam Answer

The Importance of the Deferred Income Tax Account

Prev Question Next Question

Question

The deferred income tax account -

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

D

The difference between income tax expense (based on accounting income) and the actual income taxes payable (based on taxable income) is reconciled in an account called deferred income taxes. It can be reported as an asset or a liability, depending on its balance and the circumstances.