CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Under the asset/liability method of calculating deferred tax consequences for temporary differences, deferred taxes are determined on the basis of ______.
A. partial recognition of temporary differences
B. enacted future marginal tax rates
C. tax rates in effect when the timing differences originate
Explanation: The future consequences of income tax allocation should be determined using the rates in the future, when the temporary differences reverse.

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