Question

hich of the following are true when there are multiple temporary differences (select all that apply)? multiple select question. the total of the future deductible amounts is multiplied by the future tax rate to determine the balance of deferred tax assets. the net of the future taxable and deductible amounts is multiplied by the future tax rate to determine the net deferred tax liabilities or assets. the total of the future taxable amounts is multiplied by the future tax rate to determine the balance of deferred tax liabilities.

Answer 1

The truth statements are that the total future deductible and taxable amounts, along with the net of both, are multiplied by the future tax rate to determine deferred tax assets and liabilities. These calculations reflect temporary differences between accounting and taxable incomes.

Step-by-step explanation:

When considering multiple temporary differences in tax accounting, the following statements are true:

• The total of the future deductible amounts is multiplied by the future tax rate to determine the balance of deferred tax assets.
• The net of the future taxable and deductible amounts is multiplied by the future tax rate to determine the net deferred tax liabilities or assets.
• The total of the future taxable amounts is multiplied by the future tax rate to determine the balance of deferred tax liabilities.

Deferred tax assets and liabilities arise due to temporary differences between financial accounting income and taxable income. The marginal tax rate and the average tax rate are key concepts in understanding how taxable income is affected by various levels of income.