- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 27. Income Taxes
- Subject 5. Recognition and Measurement of Current and Deferred Tax
CFA Practice Question
Under the liability method of accounting for deferred taxes, if the tax rate falls, the deferred tax liabilities ______, tax expense ______, and income ______.
B. fall; decreases; decreases
C. rise; increases; increases
A. fall; decreases; increases
B. fall; decreases; decreases
C. rise; increases; increases
Correct Answer: A
User Contributed Comments 6
| User | Comment |
|---|---|
| airborne | Hope we will get questions like these for the exam |
| jerylewis | i doubt it! |
| moneyguy | These help boost the confidence level! |
| gill15 | 1 for 9 so far. I even read the text for this section. No idea whats going on. |
| Shaan23 | I agree with GIll. Got this question. Read the text as well |
| farhan92 | @gill would be a good time to brush up on the probability stuff to figure out how you're going to do on the tax section :D |