For taxable year 2018, the company's sixth year of operations, the records of Mega S Gross sales P2,463,500 Sales returns & allowances 27,500 Sales discounts 42.750 Cost of goods manufactured and sold 1,313,600 operating expenses 586,040

For taxable year 2018, the company's sixth year of operations, the records of Mega S Gross sales P2,463,500 Sales returns & allowances 27,500 Sales discounts 42.750 Cost of goods manufactured and sold 1,313,600 operating expenses 586,040

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.

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