The Deferred Income Tax Liability

Multiple Choice

The deferred income tax liability:

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