DTL, deferred tax liability
because Income is also deferred. the earning is reflected in balance sheet, when it is actually earned in installements.
because for financial reporting the entire sale is considered as revenue (accrued revenue) hence higher pretax income. For tax purposes only the installment that is made during the year is taxable (lower than pretax income), therefore causing a DTL Good night - its 3 AM CST and tax analysis portion is giving me insomnia. Hope no nightmares when I sleep !!
what is the difference between tax report and financial report
3x thunderanalyst, your answer is very clear
f/s reporting = accrual basis tax reporting = cash basis
Thunder is correct. f/s Reporting = Tax reported on finan. stmts (typically it shows on income stmt) tax reporting = Actual tax to be paid in Cash, those reflect on the tax accounts - consider this the companies Incometax filing and payments etc.