Answered: Accounting Deferred tax assets are…

Accounting Deferred tax assets are recognized when? a) Always in full b) Never recognized c) Only if recovery is probable d) Based on management choice

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 1MC: Which of the following is not a cause of a difference between pretax financial income and taxable...

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Question

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Tax

Accounting
Deferred tax assets are recognized when?
a) Always in full
b) Never recognized
c) Only if recovery is probable
d) Based on management choice

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Which of the following is an acceptable method of accounting under the tax law? The accrual method The hybrid method The cash method All of the above are acceptable None of the above
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Which of the following statements is NOT correct? A. Taxable income and accounting profit may differ due to differences between the recognition of revenue and expenses for tax and accounting purposes. B. Deferred tax assets must be assessed for the probability of their recovery. Creation of a deferred tax asset or liability occurs only if it reverses at some future date. OC. Deferred tax assets and liabilities may arise due to temporary differences between accounting profit and taxable income. D. Deferred tax liabilities may arise due to permanent differences between accounting profit and taxable income.
Which of the following is an example of a temporary difference which would result in a deferred tax asset? a. Rent revenue collected in advance included in taxable income before it is included in accounting income b. Investment gains recognized earlier for accounting purposes than for tax purposes c. Use of straight-line method for accounting purposes and an accelerated rate for tax purposes d. Use of a longer depreciation period for accounting purposes than is used for tax purpose
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Which of the following is an example of a temporary difference which would result in a deferred tax asset? Investment gains recognized earlier for accounting purposes than for tax purposes Use of a longer depreciation period for accounting purposes than is used for tax purpose Use of straight-line method for accounting purposes and an accelerated rate for tax purposes Rent revenue collected in advance included in taxable income before it is included in accounting income
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A temporary difference which would result in a deferred tax liability is a) installment sale included in accounting income at the time of sale but not in tax incomeb) subscription received in advancec) research cost is recognized as expense in accounting income but not in tax incomed) Dividend revenue on equity investment
Which of the following is a temporary difference that normally is recognized for accounting purposes before being reported as an expense for tax purposes? Unearned revenue Product warranty costs Depreciation Fines resulting from violations of the law.
Subject :accounting
Which of the following items is a permanent difference between taxable income and financial accounting income? A) Depreciation B) Dividends-received deduction C) Bad debts D) Net capital loss