Which statement is false? (a) Deferred taxes are the product of temporary differences in the recognition of

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Which statement is false?

(a) Deferred taxes are the product of temporary differences in the recognition of revenue and expense for taxable income relative to reported income.

(b) Deferred taxes arise from the use of the same method of depreciation for tax and reporting purposes.

(c) Deferred taxes arise when taxes actually paid are less than tax expense reported in the financial statements.

(d) Temporary differences causing the recognition of deferred taxes may arise from the methods used to account for items such as depreciation, installment sales, leases, and pensions.

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Understanding Financial Statements

ISBN: 9780131878563

8th Edition

Authors: Lyn M Fraser, Aileen Ormiston

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