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13 August, 05:55

I'm tax terms an owners deferred salary becomes

Nondeductable

A liability

Profit

An obstacle

+4
Answers (2)
  1. 13 August, 06:56
    0
    Option B, A liability

    Explanation:

    A deferred salary is a part of the income that was not used earlier due to heavy tax imposition. This salary is taxable when it is used after a certain period of time (usually retirement) to save the taxes.

    Such income/revenues comes under the category of deferred-long term liability as tax will be applicable on them in future.

    Hence, option B is correct.
  2. 13 August, 07:08
    0
    The correct answer is that the owners deferred salary becomes a liability.

    The reason that it becomes a liability is because it is a debt that needs to be paid out in the accounting period that it was deferred to. A deferred salary is treated similarly to your accounts payable.
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