Bon Nebo Co. sold 16,500 annual subscriptions of Bjorn for $63 during December 2015. These new subscribers will receive monthly issues, beginning in January 2016. In addition, the business had taxable income of $656,000 during the first calendar quarter of 2016. The federal tax rate is 38%. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 2016. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities x 249,250 ✓

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Q: Explain the characteristics

A:

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Q: The components of the conceptual framework ?

A:

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Q: Explain

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.