CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

What reflects the net tax effects of the temporary differences between the carrying values of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes?
A. Deferred taxes
B. Income taxes payable
C. Income tax expense
Explanation: The temporary differences in the carrying values of assets and liabilities for financial reporting purposes and the carrying values used for income tax purposes result in deferred tax assets or deferred tax liabilities. Deferred taxes represent the difference between income tax expense and income taxes payable.

User Contributed Comments 0

You need to log in first to add your comment.