[APPENDIX] Deferred income taxes is a balance sheet item for Generic 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 long-term liability because they represent an obligation to pay taxes in the future as a result of temporary differences between the book and tax basis of assets and liabilities.

[APPENDIX] Deferred Income Taxes Is a Balance Sheet Item for Generic