The deferred tax expense is the 1. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. 2. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. 3. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. 4. increase in balance of deferred tax liability from the beginning to the end of the accounting period.

Question

Business

Alexa Cunningham

8 September, 09:31

The deferred tax expense is the 1. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. 2. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. 3. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. 4. increase in balance of deferred tax liability from the beginning to the end of the accounting period.

+3

Answers (1)

Know the Answer?

Hallie Woods · Answer 1

4. increase in balance of deferred tax liability from the beginning to the end of the accounting period.

Explanation:

The deferred tax expense stand when the taxation method make us pay less taxes today but more in the subsequent accounting period.

That is because now, we have taken a higher income tax deduction for a given temporary reason and for accounting this should be reverted back asexpenses should match the revenues which generated.