deferred tax liability uses    a. Expected future tax law, regardless of whether those expected laws have been enacted   b. Current tax laws, unless enacted future tax laws are different   c. Either current or expected future tax laws, regardless of whether those expected laws have been enacted.   d. The current tax laws, regardless of expected or enacted future tax laws

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

A: Temporary differences are those differences which are there in between carrying value of asset or…

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 cases would result in a Deferred Tax Liability? I – CA of Asset > TB of Asset…

A: Solution: following cases would result in a Deferred Tax Liability as they will create future…

Q: Which of the following statements is NOT correct? O A. Taxable income and accounting profit may…

A: Option d is correct .

Q: Differentiate the accounting measurement of current tax liability and current tax asset from…

A: Tax is the charges levied by the central and state government on the net income, sale or capital…

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: 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: The purpose of an inter-period income tax allocation is to    a. Allow reporting entities to fully…

A: Tax is the amount which an individual or business is liable to pay the government for business…

Q: Difference between tax deduction and tax credit. Give example of each. Some tax credits are referred…

A: Tax: Governments levy taxes on residents to create revenue for projects that would strengthen the…

Q: Adopting wrongful means to show less profit to avoid tax is part of : a. Tax evasion b. Tax planning…

A: Tax is being the compulsory payment that is to be made to the government by the corporations,…

Q: A deferred tax liability/asset is computed using the? either current or expected tax laws,…

A: A deferred tax liability/asset is computed using the:: either current or expected tax laws,…

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities?

A: DTA stands for Deferred tax asset and DTL stands for Deferred tax liability which is integral part…

Q: TRUE OR FALSE? Under IFRS, deferred tax liability and deferred tax asset should be reported as…

A: The given statement is True... Under IFRS, deferred tax liability and deferred tax asset should be…

Q: A deductible temporary difference leads to the payment of:   Select one: A. less tax in the…

A: The question is related to Taxes on Income.There are two types of deferred tax- (i) Deferred tax…

Q: A reduction in the statutory tax rate would most likely benefi t the company’s:A . income statement…

A: A balance sheet is a financial statement that offers a framework for estimating the return rates and…

Q: Intra-period tax allocation is the allocation of the total income tax expense to the various…

A: The answer for the True or false question and relevant explanation are presented hereunder : In Tax…

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: tax collection systems is tax evasion practices

A: First option is wrong because Withholding System on Business Tax is a tax collection system which is…

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: Which of the following is true in respect of deferred tax liabilities? None of the listed choices…

A: Deferred tax liability is a liability that is created due to a difference is due and payment cycle…

Q: Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the…

A: Both deferred tax liabilities and assets should be recognized gross in the balance sheet unless the…

Q: Тах potentially abusive of the spirit of the Income Tax Act. occurs when taxpayers legally apply tax…

A: Income tax is the legal obligation of taxpayers towards the tax authorities. It is levied on income…

Q: Deferred tax liabilities should be treated as equity when:A . they are not expected to reverse.B .…

A: Deferred tax liability: Deferred tax liability is a tax that is measured or is outstanding for the…

Q: A deferred tax liability (or asset) is described as the tax effect of the temporary difference…

A: A deferred tax adjustment is prevalent where there is a temporary difference in the book value and…

Q: Tax laws, being imposition of burden, shall be strictly construed against: *         A person who…

A: The rules and regulations that govern how, when, and how much taxes must be paid to local, state,…

Q: If during the current year, taxable profit is greater than accounting profit and the difference is a…

A: Temporary differences refer to the differences between taxable and pre-tax book income the effect of…

Q: Sizable tax returns that result from automatic prepayment of taxes should (A) increase tax fraud;…

A: Tax return: It can be defined as a document that is filed with the tax authority and shows the total…

Q: Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset…

A: Explanation: Tax Base is defined as the amount that is attributed to an asset or liability for tax…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

Q: An entity shall offset a deferred tax asset and deferred tax liability A. When income taxes are…

A: As per IAS 12 - Income Taxes, An entity shall offset a deferred tax asset and deferred tax liability…

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: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: ustification for the method of determining periodic deferred tax expense is based on the concept of?…

A: Solution: According to matching principal, If income is recognized in particular period, all…

Q: explain the recognition criteria of deferred tax assets and deferred tax liability.

A: Deferred tax asset are the assets recorded when the income calculated according to statutory tax…

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

A: Temporary difference between the tax base and carrying amount arise on account of difference in the…

Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: If a government wants to obtain the maximum tax revenue it should   A. use static tax analysis.   B.…

A: Answer: C) The government should strive to assess and increase tax rate to maximize the revenue. The…

Q: plication? Tax laws imposing business tax Tax implementing rules and regulations that are remedial…

A: Explanation of concept Tax:- A tax is the compulsory payment which is imposed by the government on…

Q: the process of reducing the allowable deduction of interest expense by a certain percentage is…

A: the process of reducing the allowable deduction of interest expense by a certain percentage is…

Q: When certain expenditures result in tax credits that directly reduce taxes, the companywill most…

A: Tax credits directly reduces taxes and these are permanent in nature. Hence, there is no deferred…

Q: How might a reduction in future tax rates affect deferred tax assets in a way that reduces current…

A:

Q: An excess tax depreciation will result to a deferred tax liability.

A: In many countries, companies maintain two sets of books of accounts for financial and tax purposes.…

Q: A net operating loss (NOL) carryforward creates: A-a deferred tax liability that should be…

A: Net operating loss is the excess amount of allowable deductions over the taxable income. When the…

Q: Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the…

A: Deferred tax liabilities and deferred tax assets arise when there are timing differences between…

Q: A deferred tax liability or asset that is related to an asset or liability shall be classified in…

A: Solution: True. This is because deferred tax liability or asset are classified in the statement of…

Q: Nonordinary items resulting in income or loss a. include unusual but not infrequent gains. b.…

A: a. include unusual but not infrequent gains.

Q: Deferred tax asset and deferred tax liability are based on future tax rates while current tax asset…

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