Which of the following cases would result in a Deferred Tax Liability? I – CA of Asset > TB of Asset II – CA of Asset < TB of Asset III – CA of Liability > TB of Liability IV – CA of Liability < TB of Liability I and IV II and III II and IV I and III
Which of the following cases would result in a Deferred Tax Liability? I – CA of Asset > TB of Asset II – CA of Asset < TB of Asset III – CA of Liability > TB of Liability IV – CA of Liability < TB of Liability I and IV II and III II and IV I and III
Which of the following cases would result in a Deferred Tax Liability? I – CA of Asset > TB of Asset II – CA of Asset < TB of Asset III – CA of Liability > TB of Liability IV – CA of Liability < TB of Liability I and IV II and III II and IV I and III
Which of the following cases would result in a Deferred Tax Liability? I – CA of Asset > TB of Asset II – CA of Asset < TB of Asset III – CA of Liability > TB of Liability IV – CA of Liability < TB of Liability
I and IV
II and III
II and IV
I and III
Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.
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