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8 July, 19:46

Major reasons for disclosure of deferred income tax information is (are)

a. better assessment of quality of earnings.

b. better predictions of future cash flows.

c. predicting future cash flows for operating loss carryforwards.

d. All of these answer choices are correct.

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Answers (1)
  1. 8 July, 21:31
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    d. All of these answer choices are correct.

    Explanation:

    Is important to match the expenses with the revenues they are related. If for tax purposes we can deduct a full equipment value in one year. This means we are goung to pay higher income taxes in the future as we don't have the depreciation expense available for taxes porpuses.

    The use of deferred incoem tax will be useful to knwo how much are the actual cash obligation and the expected value of the future cash obligations
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