nues. 14. The deferred income tax liability: AJ Arises when income tax expense reported on the income statement exceeds the amount of income taxes payable to the government. B) Is a contingent iablility C) Arises when income tax expense reported on the income statement is less than the amount of income taxes payable to the government. D) Is never recorded El is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary. All of the following statements related to recording warranty expense are true except: 5. A) Recording estimated warranty expense complies with the full disclosure principle. B)Warranty expense should be recorded in the period when the warranty service is performed. CRecording estimated warranty expense complies with the matching principle. D) The seller reports a warranty obligation as a liability. E) Warranty costs are probable and the amount can be estimated. C