All of the following statements are true EXCEPT: A) deferred income t

All of the following statements are true EXCEPT:

A) deferred income taxes can be thought of as a liability.
B) deferred income taxes arise because firms are allowed to keep two sets of financial statements; one for shareholders and one for the IRS.
C) deferred income taxes arise because firms are allowed to keep two sets of financial statements; one for the shareholders and one for internal management.
D) deferred income taxes are also referred to as deferred tax liabilities.

ANSWER

C