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Andrews [41]
3 years ago
12

Which of the following is false?

Law
1 answer:
Charra [1.4K]3 years ago
8 0

Answer:

Under GAAP, deferred taxes are reported based on the classification of the asset or liability to which it relates.

Explanation: Deferred income tax is a balance sheet item which can either be a liability or an asset as it is a difference resulting from recognition of income between the accounting records of the company and the tax law because of which the income tax payable by the company is not equal to the total expense of tax reported.

Generally, the classification of a deferred tax account as current or noncurrent hinges on the classification of the asset or liability that gave rise to it. Any deferred tax account not arising from a specific asset or liability is classified as current or noncurrent based on its expected reversal date.

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