Question

Deferred tax liabilities can arise from a revenue being reported on the tax return ______ the income statement, or an expense being reported on the tax return ______ the income statement.

a) After; after
b) Before; before
c) After; before
d) Before; after

Answer 1

Deferred tax liabilities can arise from timing differences between reporting revenue and expenses on tax returns and income statements.

Step-by-step explanation:

Deferred tax liabilities can arise from a revenue being reported on the tax return before the income statement, or an expense being reported on the tax return after the income statement.