Which of the Following Statements Regarding Temporary Differences Is False

Multiple Choice

Which of the following statements regarding temporary differences is false?

A) Temporary differences can result in deferred liabilities and deferred assets.
B) Deferred tax liabilities are found on the balance sheets of nearly every company.
C) For most companies,the primary source of deferred taxes is timing differences related to depreciation.
D) The deferred tax liability equals the temporary difference times the tax rate.
E) Temporary differences result in the cancellation of taxes.