In 2021, a company received advance payments from the customers. The company will perform the...

90.2K

Verified Solution

Question

Accounting

In 2021, a company received advance payments from the customers. The company will perform the service in 2022.

At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset.

2. record a deferred tax liability.

3. have a permanent difference in pretax financial income and taxable income for 2021.

4. have no differences in pretax financial income and taxable income for 2021.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students