medium · Investment Banking accounting

What does a 'Deferred Tax Liability' (DTL) represent on the Balance Sheet?

  1. A fine for underpaying taxes in the previous fiscal year
  2. Taxes that have been recognized as an expense on the Income Statement but not yet paid in cash
  3. A refund the company expects to receive from the IRS
  4. The total amount of tax the company has paid since its inception

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