Accounting · Corporate Accounting

Given below are two statements: Statement I: Deferred Tax Liabilities (Net) is the amount of tax on the temporary difference between accounting income and taxable income. It arises when accounting income is more than taxable income. Statement II: Deferred Tax Liabilities (Net) and Deferred Tax Assets (Net) are only book entries, i.e., they are neither actual liabilities nor actual assets. In the light of the above statements, choose the correct answer from the options given below: