Taxes

Question 1

What approach is used to determine income tax expense?

Answer 1

Asset and liability approach

Including calculation of and change in deferred tax assets and liabilities

Question 2

Under the deferred method of accounting for deferred income taxes, a credit balance in the deferred income taxes account that appears on the balance sheet:

Answer 2

Does not represent a payable in the usual sense in which the term “payable” is used in financial statements