U.S. GAAP and IFRS require complex procedures in accounting for income taxes. For example, firms provide for estimated uncollectible accounts when they recognize sales on account but delay the tax deduction until later, when firms judge that particular customers' accounts are uncollectible. In this example, a

a. deferred tax asset arises.
b. deferred tax liability arises.
c. firm recognizes a revenue earlier for financial reporting than for tax reporting.
d. firm recognizes a revenue earlier for tax reporting than for financial reporting.
e. firm recognizes an expense earlier for tax reporting than for financial reporting.


A

Business

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