In 2021, a company performed service for the customers. It will receive payments from the customers in 2022. At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer). 1. record a deferred tax asset. 2. record a deferred tax liability. 3. have a permanent difference in pretax financial income and taxable income for 2021. 4. have no differences in pretax financial income and taxable income for 2021.

SWFT Individual Income Taxes
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ISBN:9780357391365
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Chapter18: Accounting Periods And Methods
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In 2021, a company performed service for the customers. It will receive payments from the customers in 2022.

At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset.

2. record a deferred tax liability.

3. have a permanent difference in pretax financial income and taxable income for 2021.

4. have no differences in pretax financial income and taxable income for 2021.

 

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