“The taxes payable method makes sense because income tax expense is based on the income tax return. I don’t understand why we bother with deferred tax liabilities and deferred tax assets.”

Present arguments to convince the student why accounting for income tax should consider both current tax and deferred tax.

Answer rating: 100% (QA)

The fellow student has a point because the current tax liability is an obligation to the Tax Office that is nearterm and easily calculated The Company ... View the full answer