Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. The largest item of the Deferred Tax Liability for most companies is caused by? 1. providing the allowancefor doubtful accounts for book purposes. 2. differences in inventory cost flow assumptions (FIFO vs. LIFO) for tax versus financial accounting purposes. 3. differences in depreciation methods (accelerated vs.straight-line) for tax versus financial accounting purposes. 4. amortizing bond premium or discount fortax purposes.

Deferred tax liabilityA deferred tax liability is an amount of money that a company expects to pay…

Answered: The largest item of the Deferred Tax…

Business

Accounting

The largest item of the Deferred Tax Liability for most companies is caused by?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

The largest item of the Deferred Tax Liability for most companies is caused by? 1. providing the allowance
for doubtful accounts for book purposes. 2. differences in inventory cost flow assumptions (FIFO vs. LIFO
) for tax versus financial accounting purposes. 3. differences in depreciation methods (accelerated vs.
straight-line) for tax versus financial accounting purposes. 4. amortizing bond premium or discount for
tax purposes.

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