Which statement is true: An extraordinary item must meet which of the following three criteria? a. Unusual and measurable, shown net of income tax. b. Infrequent and unusual, shown net of income tax. c. Foreseeable and material, shown net of income tax. d. Substantial and measurable, shown net of income tax.

Q: TRUE OR FALSE? 1st statement: Interest income must be included in the computation of gross income if…

A: Gross Income: The entire earnings a person obtains before taxes and other deductions are referred to…

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: Which of the following tax concept(s) allow for the deferral of gains on nonrecognition…

A: Non-recognition transactions, according to the Internal Revenue services are those transactions, on…

Q: Total comprehensive income is: Select one alternative: profit or loss after tax other…

A: Solution: Total comprehensive income is "profit or loss after tax + other comprehensive income after…

Q: 2. The following are requisites of a valid tax, EXCEPT A. tax must not encroach upon inherent and…

A: Solution Tax                 Tax is the amount that is to be paid to the government or local…

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: 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: Which of the following "is not" a criteria that must be met to deduct business and/or investment…

A: When it comes to determining the deduction of expenses allowed to the taxpayer, there are various…

Q: temporary difference arises when an element of income is reported for tax purposes in the period:…

A: As per IFRS deferred  tax assets and liabilities  arises on temporary  differences which  can either…

Q: Which of the following cases would result to a Deferred Tax Asset? I – Tax Revenues Accounting…

A: Solution: Following cases would result in deferred tax asset as it will create future deductible…

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: Which of the following refunds is not subject to income tax a, Local tax expense b.Special…

A: Answer: Th refund which is not subject to income tax are those amount for which earlier deduction…

Q: resident of the Republic may pay tax

A: A resident of South Africa is liable to pay tax to SARS on his/her income across the world.

Q: Non-assessable income does not increase tax liability, but tax-free income increases tax liability-…

A: Non-Assessable Income-: Non-assessable non-exempt revenue is common or statutory revenue that is…

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: 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: or accounting and tax purposes. B. Intraperiod tax allocation is required for the effect of…

A: Option A is incorrect because Intraperiod tax allocation arises because certain temporary difference…

Q: For each item below, indicate whether it involves: 1. 2. 3. Use the appropriate number to indicate…

A: A deferred tax asset is a business tax credit for future taxes, and a deferred tax liability means…

Q: 2. Creditable deductible input tax includes the following, except, a. Presumptive, transitional, and…

A: Value-added tax [VAT] is a tax that is charged on each and every stage of the goods and services…

Q: The basic issue in deciding whether to record a valuation allowance for a deferred tax asset is…

A: A deferred tax asset is something that reduces future taxable income on a company's balance sheet.…

Q: d. either current or expected future tax laws

A: Taxes are the amount of dues or liabilities that need to be paid by the individual to the…

Q: Additional disclosures are required pertaining to the income tax expense reported in the income…

A: The company must disclose all additional information regarding the income tax expenses reported in…

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’s the difference? Explain to Laura how differences between financial reportingstandards and…

A: Accounting income reported in accordance with financial reporting standards and taxable income under…

Q: What are the two objectives of accounting for income taxes O Deferred Tax Assets Deferred Tax…

A: The answer is as fallows

Q: The tax rate is the ratio between the amount of tax and the amount of income. true Error

A: >Tax rate is the rate of tax that is levied by the regulating authorities.>Income tax rate is…

Q: of an ad valorem tax on person al use property than for busine

A: Ad valorem taxes are proportional to the value of the asset on which it is charged.

Q: Which of the following methods is not allowed for tax purposes if FIFO (first in first out) is used…

A: Under FIFO(First in, First Out) method, inventories purchased first are assumed to be sold first.…

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…

Q: Deferred tax assets and deferred tax liabilities represent the tax effect of the temporary…

A: A deferred tax asset represents a financial benefit, while a deferred tax liability indicates a…

Q: Financial Assets representing a contractual right to receive cash in the future. Financial Liability…

A: Financial asset, is an asset that gives contractual right to an entity, to receive cash or another…

Q: Which of the following statements is / are correct?

A: Refundable tax credits include earned income credit. Non refundable tax credits are those credits…

Q: Which of the following is NOT a reason why timing is significant in tax? Group of answer choices…

A: Tax: When any assesse is earned the income from any sources of income which are mentioned in the tax…

Q: . As distinguished from deductions, tax credit is a. A deduction from gross sales/receipts b. A…

A: Tax deductions are the amount which can reduce from taxable income. After such deduction, remaining…