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2 votes
I’m tax terms an owners deferred salary becomes

Nondeductable
A liability
Profit
An obstacle

2 Answers

2 votes

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.

User Milan Gajera
by
8.1k points
2 votes

Answer:

Option B, A liability

Step-by-step 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.

User Narda
by
8.3k points

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