When a company has a credit balance in its Deferred Tax account,this amount would appear as a(n)
A)contra asset on the balance sheet.
B)stockholders' equity account on the balance sheet.
C)expense account on the income statement.
D)liability account on the balance sheet.

Question

Quizplus · Accepted Answer

A credit balance in the Deferred Tax account indicates a future tax liability, hence it appears as a liability on the balance sheet.

When a Company Has a Credit Balance in Its Deferred