The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. Code Letter Term Code Letter Term A Future deductible amount H Deferred tax consequences Income tax payable (or refund) I Future taxable amount Operating loss carryback Deferred tax liability Valuation allowance Temporary difference Deferred tax asset Income tax expense (or benefit) F Operating loss carryforward Deferred tax expense (or benefit) Taxable income Required: Indicate which term belongs with each definition by choosing the correct term. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards the financial statements that will result 2. A difference between the tax basis of an asset or liability and its reported amount settled, respectively taxable or deductible amounts in future years when the reported amount of the asset or liability isr 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively
The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. Code Letter Term Code Letter Term A Future deductible amount H Deferred tax consequences Income tax payable (or refund) I Future taxable amount Operating loss carryback Deferred tax liability Valuation allowance Temporary difference Deferred tax asset Income tax expense (or benefit) F Operating loss carryforward Deferred tax expense (or benefit) Taxable income Required: Indicate which term belongs with each definition by choosing the correct term. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards the financial statements that will result 2. A difference between the tax basis of an asset or liability and its reported amount settled, respectively taxable or deductible amounts in future years when the reported amount of the asset or liability isr 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. The deferred tax consequences of future taxable amounts
7. The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized
X
8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively
9. The sum of income tax payable and deferred tax expense (or benefit)
10. The amount of income taxes paid or payable (or refundable) for the current year
11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year
12. The excess of taxable revenues over tax deductible expenses and exemptions for the year
13. An excess of tax deductible expenses over taxable revenues in a year that may be carried back to reduce taxable income in a prior year
X
Transcribed Image Text:Definitions
The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions.
Code Letter
Term
Code Letter
Term
A.
Future deductible amount
H
Deferred tax consequences
B
Income tax payable (or refund)
I
Future taxable amount
Operating loss carryback
Deferred tax liability
D
Valuation allowance
K
Temporary difference
E
Deferred tax asset
Income tax expense (or benefit)
F
Operating loss carryforward
M
Deferred tax expense (or benefit)
Taxable income
Required:
Indicate which term belongs with each definition by choosing the correct term.
1. The deferred tax consequences of future deductible amounts and operating loss carryforwards
2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or
settled, respectively
X
3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively
4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax law, resulting from temporary differences and operating loss carryforwards at the end of the current year
5. The change during the year in a corporation's deferred tax liabilities and assets
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the future effects on income taxes, as measured
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