Which of the following accounts cannot be altered by a consolidation adjusting entry?
A) Income tax expense
B) Income tax payable
C) Deferred tax asset
D) Deferred tax asset.

Question

Quizplus · Accepted Answer

Income tax payable is a current liability account that reflects the amount of income tax that a company owes to the government as of the balance sheet date. This account cannot be adjusted through a consolidation entry because it accurately reflects the entity's obligation to pay taxes. The other three accounts may require adjustment to ensure that the consolidated financial statements reflect the correct amount of income tax expense and deferred tax assets/liabilities.

Which of the Following Accounts Cannot Be Altered by a Consolidation