Match each of the following terms with the appropriate definitions.
-Payments of income taxes that are deferred until future years because of temporary differences between GAAP and tax accounting rules.
A)Short-term note payable
B)Deferred income tax liability
C)Current liabilities
D)Warranty
E)Employee benefits
F)Federal depository bank
G)Payroll register
H)Gross pay
I)Payroll bank account
J)Times interest earned

Question

Quizplus · Accepted Answer

Deferred income tax liability is the correct match because it represents the taxes that are owed but not yet paid due to differences in accounting methods between GAAP (Generally Accepted Accounting Principles) and tax regulations, which result in income being recognized at different times for accounting and tax purposes.

Match Each of the Following Terms with the Appropriate Definitions