Please explain what is a deferred tax liability and why might one be created?
Submitted by: MuhammadDeferred tax liability is a tax expense amount reported on a company's income statement that is not actually paid to the IRS in that time period, but is expected to be paid in the future. It arises because when a company actually pays less in taxes to the IRS than they show as an expense on their income statement in a reporting period.
Differences in depreciation expense between book reporting (GAAP) and IRS reporting can lead to differences in income between the two, which ultimately leads to differences in tax expense reported in the financial statements and taxes payable to the IRS.
Submitted by: Muhammad
Differences in depreciation expense between book reporting (GAAP) and IRS reporting can lead to differences in income between the two, which ultimately leads to differences in tax expense reported in the financial statements and taxes payable to the IRS.
Submitted by: Muhammad
Read Online Income Tax Expert Job Interview Questions And Answers
Top Income Tax Expert Questions
☺ | Please explain what is working capital? |
☺ | Explain me what is a deferred tax asset and why might one be created? |
☺ | Do you know what is share capital? |
☺ | Do you know what are limited liability companies? What are its two types? |
☺ | Explain me what are adjustment entries? Why are they passed? |
Top Financial Account Categories
☺ | CFO Interview Questions. |
☺ | Billing Specialist Interview Questions. |
☺ | Financial Controller Interview Questions. |
☺ | Hedge Fund Trader Interview Questions. |
☺ | Budget Analyst Interview Questions. |