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  • What is a deferred tax liability?

    A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid. This will exist if future tax accounting income is less than future financial accounting income. Another way of expressing deferred tax liabilities can be “if your taxable income (tax return income) is […]

  • What is the journal entry to record a deferred tax liability?

    A deferred tax liability occurs as a result of a temporary difference between taxable income and financial income under U.S. GAAP. A deferred tax liability is when financial income is greater than taxable income, which means that the entity pays a lower tax amount now and will have higher taxes in the future. As the […]

  • What is a deferred tax asset?

    A deferred tax asset is an asset on a company’s balance sheet that can be used to reduce taxable income. This will exist if future tax accounting income is greater than the future financial accounting income. Another way of expressing deferred tax assets can be – if your taxable income (tax return income) is greater […]