Which of the following statements is TRUE?
A)Income tax payable is the amount of tax to be paid to the government based on the company's financial statements.
B)When income tax payable exceeds income tax expense, the company debits a Deferred Tax Asset.
C)Deferred Tax Liability is usually shown on the balance sheet as a current liability.
D)The income tax return and the income statement are identical.

Question

Quizplus · Accepted Answer

When income tax payable exceeds income tax expense, it indicates that the company has paid more tax than it has expensed, leading to a Deferred Tax Asset.

Which of the Following Statements Is TRUE