The purpose of an inter-period income tax allocation is to    a. Allow reporting entities to fully utilize tax losses carried forward from a previous year.   b. Allow reporting entities whose tax liabilities vary significantly from year to year to smooth payments to taxing agencies.   c. Amortize the deferred tax liability shown on the balance sheet.   d. Recognize an asset or liability for the tax consequences of temporary differences that exist at the balance sheet date.

Q: t is the change during the year in an entity's deferred tax liability and o O A. Current tax expense…

A: Solution: "Deferred tax expense" is the change during the year in an entity's deferred tax asset and…

Q: Describe the types of temporary differences that cause deferred tax liabilities and determine the…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: Future Tax Deductions A. Result in deferred tax liabilities. B.Rresult in deferred tax assets.…

A: Future tax deductions are the tax expenses that are to be deducted in the future period but were due…

Q: Which of the following would result in the recognition of deferred tax liabilities? Select one: A.…

A: DTT (Deferred tax liability) which is recorded in the balance sheet (BS) of company and it reports…

Q: Under IFRS when a change in the tax rates is enacted I.    Companies should record its effect on…

A: Under IFRS, companies report the effect of changes in tax rates on deferred tax accounts in the…

Q: temporary difference that would result in a deferred tax liability is O Excess of tax depreciation…

A: A deferred tax liability represents an obligation to pay taxes in the future. Temporary…

Q: s) Which of the following statements is true about temporary book-tax differences? (N O They are…

A: Temporary book-tax differences refer to the differences that arise between the pretax book income…

Q: List examples of temporary differences that create: deferred tax assets. Deferred tax liability.

A: A deferred tax asset is a balance sheet item that results from an excess or early tax payment. A…

Q: When a change in the tax rate is enacted, the effect on existing future income tax assets or…

A: The correct answer is: (D) recorded as an adjustment to income tax expense in the period of the rate…

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: The entry to recognize that a portion of a deferred tax asset would more likely than not be not…

A: Income tax actual paid and income tax expenses some time differ because of deferred income…

Q: Discuss the causes of temporary differences and permanent differences in income tax accounting; For…

A: A permanent difference is the difference between the tax expense (booked in accounts) and tax…

Q: An example of intraperiod income tax allocation is a. Reporting an extraordinary item in the income…

A: Intra-period tax allocation: An intra-period tax allocation is an allocation of tax expense between…

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: The concept of Deferred Tax arises, due to the timing difference between income as per the…

Q: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Definition:   Net Operating Loss Carryforward: The net operating loss is considered a negative…

Q: A. For some assets, straight-line depreciation is used for tax purposes while double-declining…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Describe the types of temporary differences that cause deferred tax assets and determine the amounts…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

Q: by temporary differences: bed below. Each involves future deductible amounts and/or future taxable…

A: Deferred Tax  -The term "deferred tax" (DT) describes the tax amount that is different between the…

Q: For reporting purposes, current deferred tax assets and current deferred tax liabilities for the…

A: Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA) forms an important part of Financial…

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

A: Recognition of Tax Benefits in the loss year due to NOL carry back  Basically its a treatment of Tax…

Q: deferred tax asset and deferred tax liability

A: Deferred tax is the tax arises due to the differences between accounting income and taxable income.…

Q: Intraperiod tax allocation relates income tax expense to the items that affect the amount of tax. O…

A: Income tax is calculated on income of each year in total. Intraperiod means within one period.

Q: is the defer E eductible tem arryforward.

A: Explanation : The proportion of deferred tax liability owing to transitory differences that will…

Q: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: The answer is stated below:

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: Which of the following is false? (a) Under GAAP, deferred taxes are reported based on the…

A: Liabilities that may occur in the future depending on the outcome of the future event are termed as…

Q: Of the following temporary differences, which one ordinarily creates a deferred tax asset? O…

A: A deferred tax asset arises when a company has paid taxes in advance or paid more taxes than…

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.