The Deferred Income Tax Liability

Multiple Choice

The deferred income tax liability:

A) Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government.
B) Is a contingent liability.
C) Can result in a deferred income tax asset.
D) Is never recorded.
E) Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.