How are the linked accounts for CPP different from the linked accounts for income tax - O a. CPP has a linked liability account only; income tax has an expense account only O b. CPP has a linked expense account only; income tax has a liability account only
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- 1. Which of the following statements is incorrect regarding deferred taxes? a. Income tax payable plus or minus the change in deferred income taxes equals total income tax expense. b. The deferred portion of income tax expense is the amount of change in deferred taxes related to the current period. c. In computing income tax expense, a company deducts an increase in a deferred tax liability to income tax payable. d. All of the choices are incorrect. 2. A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this liability is settled in 2022, a future taxable amount will: a. pretax financial income will exceed taxable income in 2022. b. the Company will record a decrease in a deferred tax liability in 2022. c. total income tax expense for 2022 will exceed current tax expense for 2022. d. will not be affected. 3. Assuming a 35% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting a…35- What are the expenses that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be deducted from the profit ? a) Taxable Earnings B) Tax Exempt Earnings NS) Disallowable expenses D) Commercial Profit TO) Legally Accepted Expenses1. ) Which of the follwing types of tax may not be shifted a. Percentage Tax b. Excise Tax c. Income Tax 2.) Which pay is not tax exempt for a statutory minimum wage earner a. Holiday pay b. Commissions c. Overtime Pay d. Hazard Pay
- 20. A temporary difference arises when a revenue item is reported for tax purposes in a period After it is reportedin financial income Before it is reportedin financial income No Yes No No Yes No Yes YesPLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes should not be recognized for certain temporary differences. What is the conceptual basis for this argument? 2.What events create permanent differences between accounting income and taxable income? What effect do these events have on the determination of income taxes payable and deferred income taxes? Identify three examples of permanent differences between accounting income and taxable income.1 contiune 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)…
- 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)…39a What is the income that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be added to the profit? a) Commercial Profit B) Tax Exempt Earnings NS) Taxable Earnings D) Disallowable expenses TO) Legally Accepted ExpensesCourse: AccountingWithin financial statements under IFRS standards, there is obviously not typical tax balance sheet (8 columns).a) Why is it still being prepared?b) Is it possible to transfer this tax balance sheet to other financial statements under IFRS? From another point of view, is it easy to prepare income tax statement ONLY with financial statements under international standards (IFRS)?
- 1. cont... 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)…True (t) or False (f) ______ The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial accounting purposes.True/False 1. Depreciable property relates to expenses or losses that are deductible from taxable income after they are recognized in financial income.2. Deferred tax assets should not be recognized in the accounts because they fail to meet the definition of an asset. 3. A corporation that has taxfree income has an effective tax rate that is less than the statutory (regular) tax rate. 4. The accounting for defined benefit pension plans is highly reliant upon information and measurements provided by actuaries5.The alternative minimum tax (AMT) was developed by FASB to ensure that a company's reported tax expense is aligned with the cash amount paid for income taxes.