Which answer is right? Help Which of the following items is reported as adeferred tax liability?a) Tax refund expected next yearb) Prepaid tax amountsc) Current year's tax payabled) Temporary difference when book incomeexceeds taxable income

Accounting and taxation - the fact is that it is necessary to understand the differences between…

Answered: Which of the following items is…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 12GI

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Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes
As a general rule, which of the following is to be included in the annual tax return as an income for the taxable year? * Earned, accrued or received under cash basis of accounting. Earned and received under accrual basis of accounting excluding receivables. Earned including those not yet received under accrual basis of accounting. Earned, accrued or received either under cash or accrual basis of accounting.
What is the effect of deferred tax asset and deferred tax liability on the current year’s income taxexpense? Explain briefly.
In computing the change in deferred tax accounts, which tax rates are used? A. Current tax rates B. Past years' tax rates O c. Enacted future tax rates O D. Estimated future tax rates
Which of the following statements is correct regarding current and deferred tax expense? O A. Deferred tax expense is equal to the change in deferred tax liability or asset from the beginning of the year to the end of the year B. Current tax expense is equal to the income taxes payable on the corporate tax return, assuming no estimated tax payments were made. C. Total tax expense is equal to the current tax expense plus deferred tax expense minus deferred tax benefit during the year O D. All of these statements are correct regarding current and deferred tax expense.
It is the change during the year in an entity's deferred tax liability and deferred tax asset A. Current tax expense O B. Deferred tax expense C. Income tax expense O D. All of these
Which of the following is deducted from the financial income in computing for the taxable income? Excess of accounting depreciation from the allowed tax deduction Donations received during the year Penalties paid for late filing of tax returns Unrealized losses from FA@FVTOCI
Expenditures currently deducted in the tax return but not included with expenses in the income statement until subsequent years create deferred tax liabilities. O True O False
True/False A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.
Accounting profit is O A. The The profit or loss is for a period determined before deducting in accordance tax expense O B. The profit or loss is for a period determined in accordance with tax law C. The profit or loss after for a period after deducting tax expense O D. The profit or loss after current tax expense determined accordance with tax law
It is a kind of withholding tax which is prescribed on certain income payments and is creditable against the income tax due of the payee for the taxable quarter/year in which the particular income was earned. a. Withholding tax on income b. Creditable withholding tax c. Final withholding tax d. All of the above
Recognition of tax benefits in the loss year due to a NOL carry back involves:

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Which of the following items is reported as a deferred tax liability? a) Tax refund expected next year b) Prepaid tax amounts c) Current year's tax payable d) Temporary difference when book income exceeds taxable income