CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

When a deferred tax liability reverses, it leads to an increase in ______.
A. liabilities
B. cash outflow
C. net earnings and equity
Explanation: When a deferred tax liability reverses, the company pays out higher actual taxes than those reported in the income statement. This increases the cash outflow.

User Contributed Comments 3

User Comment
CoffeeGirl when deferred tax liaiblity is reverse, then increase cash outflow
when deferred tax liability, then decrease cash outflow.
Mago i c
nmech1984 R.E.V.E.R.S.E.S. How do I expect to pass without reading correctly..?!
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