Check my answers. Determine if the timing differences are temporary or permanent. Beginning Unappropriated Retained Earnings 375,000 Permanent Add - Net income per books (after-tax) 205,050 Permanent Less - Distributions of property -25,000 Permanent

Check my answers. Determine if the timing differences are temporary or permanent. Beginning Unappropriated Retained Earnings 375,000 Permanent Add - Net income per books (after-tax) 205,050 Permanent Less - Distributions of property -25,000 Permanent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

Check my answers.

Determine if the timing differences are temporary or permanent.

Beginning Unappropriated Retained Earnings	375,000	Permanent
Add - Net income per books (after-tax)	205,050	Permanent
Less - Distributions of property	-25,000	Permanent

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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