What are the two objectives of accounting for income taxesO Deferred Tax AssetsDeferred Tax LiabilitiesO Income Tax ExpenseIncome Tax LiabilityO Temporary DifferencesPermanent DifferencesNone of the above

What are the two objectives of accounting for income taxes O Deferred Tax Assets Deferred Tax Liabilities FO Income Tax Expense Income Tax Liability 10.Temporary Differences Permanent Differences None of the above

What are the two objectives of accounting for income taxes O Deferred Tax Assets Deferred Tax Liabilities FO Income Tax Expense Income Tax Liability 10.Temporary Differences Permanent Differences None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: PLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes…

A: Temporary differences are defined as differences between the carrying amount of assets and…

Q: Deferred taxes result from different methods applied for taxable income and income for financial…

A: Deferred taxes represent temporary differences in income recognition for tax and financial…

Q: Discontinued operations, and unusual gains and losses are both reported net of tax in the income…

A: Lets understand the basics.Discontinued operation is a operation which is closed by the business. In…

Q: Are there differences between financial reporting standards and income tax rules thatwill not cause…

A: Normally, business follow GAAP in preparing their financial statements in order to arrive at their…

Q: Property taxes are considered: a. imposed tax revenues. b. derived tax revenues. c. voluntary…

A: Lets understand all the options. Imposed tax revenue is a revenue generated by the government based…

Q: An example of interperiod income tax allocation is reporting discontinued operations, net of tax. O…

A: The purpose of inter period income tax allocation is to allocate the income tax expenses to the…

Q: 1.The definition of gross income in the tax law is: A. All items specifically listed as income in…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: he deferred income tax liability: Top of Form Multiple Choice Is recorded whether or not the…

A: Deferred tax asset/liability results from temporary difference between the income tax recorded and…

Q: Taxable income is a tax accounting term and is also referred to as income before taxes true or…

A: Tax Accounting is a distinct branch of accounting dedicated to managing tax-related aspects for…

Q: Differentiate EXCLUSIONS, DEDUCTIONS and CREDITABLE WITHHOLDING TAX based on their similar…

A: EXCLUSIONS, DEDUCTIONS, and CREDITABLE WITHHOLDING TAX all are a part of the taxation benefits that…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: What is a tax? And explain why it is required for an economy. c)2. List any three 3. Distinguish the…

A: 2. List any three sources of tax legislations.Answer: Three Sources of Tax Legislations…

Q: A tax structured so that people with the different incomes pay the same percentage of their income…

A: A tax structured so that people with the different incomes pay the same percentage of their income…

Q: Question Content Area Permanent differences impact deferred tax assets. current tax liabilities.…

A: There are two type of differences in accounting. One is permanent differences and other is temporary…

Q: QUESTION 8 Which of the following is not a type of income tax? O a. Ordinary income tax O b. Capital…

A: Income Tax : Income tax is the tax paid by an individual on his/her income. Income tax is charged on…

Q: Income Taxes Payable or refundable + Changes in deferred income taxes = total income tax expense or…

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

Q: There are three general views regarding interperiod income tax allocation: no allocation, partial…

A: Income tax is a type of tax imposed by governments on income generated by businesses and limits…

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.

Question

What are the two objectives of accounting for income taxes
O Deferred Tax Assets
Deferred Tax Liabilities
O Income Tax Expense
Income Tax Liability
O Temporary Differences
Permanent Differences
None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements is / are correct?1. Some tax credits are refundable.2. Some tax credits are nonrefundable.a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.
The recognition of current tax under AASB 112/IAS 12 Income Taxes is based on the following. a. the total income tax expense for the current period. b. the prima facie tax on accounting profit before tax for the current period. c. the tax on taxable profit of the current period that is due to the taxation authorities including amounts paid during the period and amounts payable or receivable at the end of the period. d. the amount of income tax payable to, or receivable from, the taxation authorities at the end of the current period
Which of the following is NOT a reason why timing is significant in tax? Group of answer choices Tax rate changes Income or decrease in income GAAP changes Capital gain rate Filing status
A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross income? c. reduce tax owed after tax has been determined?). Another purpose of an adjustment to income is to (option: a. help determine adjusted gross income? b. calculate taxable income after agi has been determined? c. be subtracted after agi to help determine taxable income?)
8-Which one of the following represents the tax payable? a. Tax payable is the balance of the total income still to be settled in cash b. Tax payable is the balance of the net income still to be settled in cash c. Tax payable is the balance of the tax liability still to be settled in cash d. Tax payable is the balance of the taxable income still to be settled in cash
pls answer thanks.
1continue.. Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes.For each item below, indicate whether it involves: 1. A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. 2. A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. 3. A permanent difference. (e) Installment sales of investments are accounted for by the accrual method for financial reporting purposes and the installment method for tax purposes. (f) For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets’ lives are shorter for tax purposes. (g)…
For business deductions, which of the following is true (mark all that apply): A. An expense is not deductible under Federal law unless Congress creates a specific provision allowing it. B. None of these are true. OC. An expense has been held to be ordinary if it is normal, usual, or customary in the type of business conducted by the taxpayer, and an expense need not be recurring to be considered ordinary. D. An expense has been held to be necessary if a prudent businessperson would incur the same expense and the expense is expected to be appropriate and helpful in the taxpayer's business. OE. The courts have held that for any expense to be ordinary and necessary, it must also be reasonable in amount. If an expense is unreasonable, it is not deductible.
Sales tax payable, accounts payable, payroll liabilities and unearned revenue are all examples of: Group of answer choices long-term liabilities unknown liabilities current assets current liabilities
Why is the income tax payable not the same as income tax expense?
16. Which of the following is NOT correct? a.Tax credits may be refundable or non-refundable. b. Income from capital related transactions is an example of an exempt income for income tax purposes. c.Tax credits are tax previously paid, or an amount used to reduce tax liability if certain conditions are met. d.Tax Relief is income that is not subject to tax.
QUESTION 4 Which of the following allow a tax filer to legally reduce the amount of tax owed? Select all that apply. O A. The standard deduction. B. Tax returns. C. Tax evasion. D. Tax exemption. E. FICA taxes paid. F. Tax credits. G. Itemized deductions. QUESTION 5 Which of the following best describes taxable income? O A. The sum of your adjusted gross income and earned income tax credit. B. The sum of your wage income, unemployment benefits, and interest. C. The amount of income on which taxes were withheld by your employer. D. The amount of income you have after subtracting allowable deductions and exemptions.