Which statement is false? a) Deferred taxes are the product of temporary difference in the recognition of revenue and expense for taxable income relative to reported income. b) Deferred taxes arise from the use of the same method of depreciation for tax and reporting purposes. c) Deferred taxes arise when taxes actually paid are less than tax expense reported in the financial statements. d) Temporary difference causing the recognition of deferred taxes may arise from the methods used to account for items such as depreciation, installment sales, leases, and pensions.
Which statement is false? a) Deferred taxes are the product of temporary difference in the recognition of revenue and expense for taxable income relative to reported income. b) Deferred taxes arise from the use of the same method of depreciation for tax and reporting purposes. c) Deferred taxes arise when taxes actually paid are less than tax expense reported in the financial statements. d) Temporary difference causing the recognition of deferred taxes may arise from the methods used to account for items such as depreciation, installment sales, leases, and pensions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which statement is false?
a)
revenue and expense for taxable income relative to reported income.
b) Deferred taxes arise from the use of the same method of
reporting purposes.
c) Deferred taxes arise when taxes actually paid are less than tax expense reported in
the financial statements.
d) Temporary difference causing the recognition of deferred taxes may arise from
the methods used to account for items such as depreciation, installment sales,
leases, and pensions.
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