An Increase in a Deferred Tax Liability Is Recognized When

Multiple Choice

An increase in a deferred tax liability is recognized when

A) the tax accountant omits taxable revenue from the tax returns.
B) net income measured under GAAP is greater than taxable income on tax returns because of temporary timing differences.
C) the amount of tax paid to the government is more than that calculated by the accountant on the company's tax return.
D) a tax audit by the IRS causes an increase in taxes due from a previous year's tax return.