Chapter 16, Problem 16.31E

Concepts; terminology

• LO16–1 through LO16–8

Listed below are several terms and phrases associated with accounting for income taxes. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.

List A	List B
_____ 1. No tax consequences	a. Deferred tax liability
_____ 2. Originates, then reverses	b. Deferred tax asset
_____ 3. Revise deferred tax amounts	c. 2 years
_____ 4. Operating loss	d. Current and deferred tax consequence combined
_____ 5. Future tax effect of prepaid expenses; tax deductible when paid	e. Temporary difference
_____ 6. Loss carryback	f. Specific tax rates times amounts reversing each year
_____ 7. Future tax effect of estimated warranty expense	g. Nontemporary differences
_____ 8. Valuation allowance	h. When enacted tax rate changes
_____ 9. Phased-in change in rates	i. Net deferred tax asset or liability
_____ 10. Balance sheet presentation	j. “More likely than not” test
_____ 11. Individual tax consequences of financial statement components	k. Intraperiod tax allocation
_____ 12. Income tax expense	l. Negative taxable income