Answered: Which of the following items is most…

Which of the following items is most likely a short-term liability? Select one: a. Finance lease covering 30-year term b. Deferred income taxes c. Bonds payable d. Accounts payable

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter6: Building And Maintaining Good Credit

Section6.1: Advantages And Disadvantages Of

Problem 1CC

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Question

Which of the following items is most likely a short-term liability?

Select one:

a. Finance lease covering 30-year term

b. Deferred income taxes

c. Bonds payable

d. Accounts payable

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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