In the United States, companies can maintain two separate sets of books for financial and tax purposes. Since financial and tax accounting rules differ, temporary differences can arise between the two ...

What is tax effect accounting? On the balance sheet of companies, we sometimes see deferred tax assets recorded as assets and deferred tax liabilities as liabilities. Due to the limit of space, I will ...

Deferred taxes refer to the taxes that a company will pay or receive in the future, due to temporary differences between its accounting profit and taxable income. These differences can arise because ...