Which of the following statements is (are) correct about deferred taxes?
I. Deferred taxes can occur because of geographical problems with the location of corporate headquarters.
II. Deferred taxes can occur because some companies use the straight-line depreciation method to calculate
Income reported to stockholders and accelerated depreciation to calculate taxable income. This practice
Reduces taxes owed.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

Which of the following statements is (are) correct about deferred taxes? 
I. Deferred taxes can occur because of geographical problems with the location of corporate headquarters.
II. Deferred taxes can occur because some companies use the straight-line depreciation method to calculate
Income reported to stockholders and accelerated depreciation to calculate taxable income. This practice
Reduces taxes owed.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

The Answer of Which of the following statements is (are) correct about deferred taxes? 
I. Deferred taxes can occur because of geographical problems with the location of corporate headquarters.
II. Deferred taxes can occur because some companies use the straight-line depreciation method to calculate
Income reported to stockholders and accelerated depreciation to calculate taxable income. This practice
Reduces taxes owed.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Which of the Following Statements Is (Are) Correct About Deferred