Orleans & Co., a cash-basis taxpayer, prepares accrual-basis financial statements. In the current year balance sheet, Orleans's deferred income tax liabilities increased in comparison with those reported for the previous year. Which of the following changes would cause this increase in deferred income tax liabilities?
I.An increase in prepaid insurance premium
II.An increase in rent receivable
III.An increase in warranty obligations
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Orleans & Co., a cash-basis taxpayer, prepares accrual-basis financial statements. In the current year balance sheet, Orleans's deferred income tax liabilities increased in comparison with those reported for the previous year. Which of the following changes would cause this increase in deferred income tax liabilities?
I.An increase in prepaid insurance premium
II.An increase in rent receivable
III.An increase in warranty obligations
