- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 27. Income Taxes
- Subject 3. Determining the Tax Base of Assets and Liabilities
CFA Practice Question
A decrease in income tax rates will ______
II. decrease deferred tax assets.
III. increase deferred tax liabilities.
IV. increase deferred tax assets.
I. decrease deferred tax liabilities.
II. decrease deferred tax assets.
III. increase deferred tax liabilities.
IV. increase deferred tax assets.
Correct Answer: I and II
The net effect is to increase or decrease tax expense.
User Contributed Comments 2
| User | Comment |
|---|---|
| farhan92 | finally got one right :( |
| leeboy | Yep. See you next semester |