The following are examples of non-adjusting events after the reporting period that would generally result in disclosure, except A. The determination after the reporting period of the amount of profit-sharing or bonus payments. B. Changes in tax rates or tax laws enacted or announced after the reporting period that have a significant effect on current and deferred tax assets and liabilities. C. Entering into significant commitments or contingent liabilities, for example, by issuing significant guarantees. D.Abnormally large changes after the reporting period in asset prices or foreign exchange rates.

Q: e journal entry required to record the tax effect of the revaluation. a. None of answers given b.…

A: Revaluation has been the process of adjusting a fixed asset class book value to its own current…

Q: Which of the following statements accurately describes the impact of accounting for bad debts on…

A: This question pertains to the impact of accounting for bad debts on taxes. Bad debts occur when a…

Q: Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to…

A: Journal entries refers to the process of systematically documenting or recording the financial…

Q: The carry forward periods for losses varies with the type of loss. Briefly describe the carry…

A: A tax loss carry forward is a provision that allows to the taxpayer to move a loss of tax to coming…

Q: When assessing realizability of deferred tax assets, management must consider positive and negative…

A: The objective of the question is to identify which of the given options would not be considered as…

Q: When a company pays taxes that were previously recorded as a deferred tax liability, the temporary…

A: The objective of the question is to understand the impact on the temporary difference when a company…

Q: hy do companies choose to accelerate depreciation on their tax return and not on their income…

A: Depreciation is the decrease in value of assets and in accerlated method there is more depreciation…

Q: Which of the following is true

A: The correct answer is 2. Investments in stocks of other companies accounted for using the equity…

Q: As an auditor, you are tasked to audit the income tax liability of Taxpayer Corp. which of the…

A: Permanent differences is difference between the tax expenses and tax payable due to an item that…

Q: Which of the following statements is false?

A: Generally, most U.S. citizens and permanent residents who work in the United States need to file a…

Q: One of the longest debates in accounting history is the issue of deferred taxes. The controversy…

A: Temporary DifferenceTemporary difference refers to the difference of one income recognized by the…

Q: Accounting treatment for changes in accounting principle are best described as: Multiple Choice…

A: Accounting principles provide a base for recording the financial transactions in the financial…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: Please refer to the sample and paraphrase the deferred income tax. Please write a close word count…

A: Deferred Income Tax The meaning of deferred Income tax which was incurred in both the ways like…

Q: Long-term debt intended to be repaid from tax levies or special assessments is recorded in debt…

A: Long-term debt that is intended to be repaid from tax levies or special assessments is typically…

Q: A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible…

A: A valuation allowance is a counter-account to a deferred tax asset account that reflects the amount…

Q: If tax laws allow a company to postpone paying taxes on activities reported in the current period’s…

A: Deferred Tax Liability: Deferred Tax Liability can be created upon occurrence of difference…

Q: A temporary difference which would result in a deferred tax liability is a) installment sale…

A: Definition: Deferred tax liability:- It is the liability of tax that a business has yet not paid in…

Q: Which of the following statements concerning the classification of deferred tax assets and…

A: A deferred tax asset (DTA) and a deferred tax liability (DTL) are accounting concepts related to the…

Q: IV.  Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only.…

A: Correct option:-  b. I, III, and IV only. Explanation:-  The reconciliation between actual tax…

Q: Which of the following has the greatest effect of reducing tax payable through the acceleration of…

A: Bad Debt refers to the value of those uncollected sum of money or a form of expense which is owned…

Q: I. Review the adequacy of the withholding procedures. II. Determine the last remittance of…

A: Withholding taxes are those deducted from the earnings of employees and subsequently, these taxes…

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.