Net income after tax is: The difference of financial income and total deferred income tax expense. The difference of taxable income and current income tax expense. The financial income less any current income tax expense add any income tax benefit. Cannot be determined.

Net income after tax is: The difference of financial income and total deferred income tax expense. The difference of taxable income and current income tax expense. The financial income less any current income tax expense add any income tax benefit. Cannot be determined.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 18DQ

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Question

Net income after tax is:

The difference of financial income and total deferred income tax expense.

The difference of taxable income and current income tax expense.

The financial income less any current income tax expense add any income tax benefit.

Cannot be determined.

Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

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