The attitude of the Financial Accounting Standards Board toward deferred tax liabilities is that they are
A) an amount that results in a future obligation and meets the definition of a liability.
B) a bookkeeping item that is used merely to maintain equality of the accounting equation.
C) not true liabilities because the balance increases every year.
D) not payable in the immediate future so it not necessary to record them.

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board considers deferred tax liabilities as an amount that results in a future obligation and meets the definition of a liability. This means that they must be recognized and recorded in a company's financial statements.

The Attitude of the Financial Accounting Standards Board Toward Deferred