Deferred income taxes is a balance sheet item for Iowa Products Company.How would it most likely be classified on the balance sheet?
A) Owners' equity
B) Long-term liability
C) Expense
D) Contra liability

Question

Quizplus · Accepted Answer

Deferred income taxes are a result of temporary differences between book and tax accounting methods, and therefore are a type of long-term liability that appears on the balance sheet.

Deferred Income Taxes Is a Balance Sheet Item for Iowa