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Basic Question 15 of 15
Under the liability method of accounting for deferred taxes, if the tax rate falls, the deferred tax liabilities ______, tax expense ______, and income ______.
B. fall; decreases; decreases
C. rise; increases; increases
A. fall; decreases; increases
B. fall; decreases; decreases
C. rise; increases; increases
User Contributed Comments 6
| User | Comment |
|---|---|
| airborne | Hope we will get questions like these for the exam |
| jerylewis | i doubt it! |
| moneyguy | These help boost the confidence level! |
| gill15 | 1 for 9 so far. I even read the text for this section. No idea whats going on. |
| Shaan23 | I agree with GIll. Got this question. Read the text as well |
| farhan92 | @gill would be a good time to brush up on the probability stuff to figure out how you're going to do on the tax section :D |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis
CFA® 2024 Level I Curriculum, Volume 3, Module 9.