ex your 394 Section A. following consequences: If a company fails to allow for deferred tax liabilities, it can lead to overstatement of profit with the L it Distortions of Earnings per share Higher gross Profit margin Shareholders being misled M. iv. Over-optimistic dividend payments Answer A. (1) and () B. (1) and () C. ). () and (iv) D. All of the above. (2 marks)