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Which of the following factors will NOT impact the classification of deferred tax liabilities?

A) Growth of the firm.
B) Changes in firm operations.
C) Present value of the future payments.

Your answer: B was incorrect. The correct answer was C) Present value of the future payments.
The present value of the future payments will not impact the classification of deferred tax liabilities. Growth of the firm and the firm’s operations can each have an impact on classification of deferred tax liabilities. These can result in non-payment of deferred taxes even if they are reversed.

Q: Can anyone explain?

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