Why deferred taxes are disclosed as long-term liabilities


Response to the following questions:

1. Consider the accounts of bonds payable and reserve for rebuilding furnaces. Explain how one of these accounts could be considered a firm liability and the other could be considered a soft liability.

2. Explain why deferred taxes that are disclosed as long-term liabilities may not result in actual cash outlays in the future.

If possible, please give examples to better understand your response.

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Accounting Basics: Why deferred taxes are disclosed as long-term liabilities
Reference No:- TGS02106861

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