Final answer:
A company's Deferred income taxes account on the credit side of a balance sheet indicates a future liability for income taxes that are incurred but not yet payable, contributing to a company's overall financial obligations.
Step-by-step explanation:
If a company has a "Deferred income taxes" account on the credit side of its balance sheet, this means that the business has a liability representing income taxes that have been incurred but are not yet payable. These deferred taxes are a result of timing differences between the recognition of income and expenses for financial reporting purposes and the corresponding recognition for tax purposes. The credit balance in the Deferred income taxes account indicates that in the future, the company will owe these taxes to the tax authority. In accounting, the "T" in a T-account helps visualize this by showing assets on the left side and liabilities, such as Deferred income taxes, on the right side.