In general, accrual basis taxpayers cannot take deductions for tax purposes until economic performance occurs. Which of the following may allow accrual based taxpayers to take tax deductions before economic performance occurs as defined by general tax principles?

Q: Explain how a change in tax rates affects the measurement of deferred tax amounts.

A: Deferred Tax Asset Items on a company's balance sheet that may be used to reduce taxable income in…

Q: If a person is claimed as a dependant by another taxpayer, eligible tuition and expenses paid by…

A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…

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: Which of the following would result in the recognition of deferred tax liabilities? Select one: A.…

A: DTT (Deferred tax liability) which is recorded in the balance sheet (BS) of company and it reports…

Q: Which of the following is the most likely item to result in a deferred tax liability? * O Expenses…

A: Deferred tax liability represents the tax that is owed but not ye paid by the tax payer. It is due…

Q: All employees are required by law to deduct an amount of tax know as

A: The individuals in United states enjoy medicare and social security schemes for which certain taxes…

Q: What is an ‘exempt income’ and how does it affect the calculation or recovery of carry‐forward tax…

A: Any earning that is not subject to taxation is referred to as exempt income. Exempt income laws and…

Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…

A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: Deferred tax assets arising from the deductible temporary difference because of different treatment…

Q: The benefit of future deductible amounts can be achieved only if future income is sufficient to take…

A: Temporary Difference Temporary difference refers to the difference of one income recognized by the…

Q: What is the difference between recognition and realization of a deferred tax asset?

A: A deferred tax asset is a balance-sheet item that decreases a company's taxable income in the…

Q: Why would a taxpayer file a tax return if not required to do so?

A: A person is required to file the income tax return as per their respective country’s taxation law.…

Q: Progressive tax structure implies that persons with low taxable income pay more tax than those with…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: what is mean by Tax evasion and what reasons the people do this?

A: Tax obligation represents the liability of the taxpayer towards the government for the payment of a…

Q: Which of the following statements is most correct? a.Tax preference items for the alternative…

A: Tax preference items are the types of income that are tax-free and helps in reducing tax.…

Q: In terms of the tax formula applicable to individual taxpayers, which, if any, of the following…

A: Deductions for AGI means above the line deduction which a taxpayer can deduct from his gross income…

Q: Explain the Revenue Related to Deferred Tax Liabilities.

A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…

Q: A taxpayer can only qualify for a deduction for normal tax purposes (ignoring prohibited deductions)…

A: The General deduction formula explains the eligibility of the expense to be deducted from income.

Q: All are true except: OSD is a substitute for itemized deduction. The OSD relieves the taxpayer of…

A: In lieu of the itemised deduction of ordinary and necessary expenses paid or incurred to calculate…

Q: earnings below a certain threshold are taxed. What is your opinion on the fairness of this tax?

A: social security tax is such type of tax in which a percentage of the gross wages that most of the…

Q: In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In…

A: Introduction: RRSP (Registered Retirement Savings Plan): A (RRSP) is a retirement funds plan where…

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: What is the effect on the tax liability of a taxpayer who does not protest an assessmer

A: Deficiency Taxes: It is the amount of tax as per the tax authority which is not paid by the…

Q: What are the benefits or advantages of filing a consolidated income tax return?

A: The consolidated tax return represents the single tax return of the affiliated group of companies.…

Q: TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is…

A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…

Q: What is the FICA tax liability status of pretax contributions to a qualified deferred compensation…

A: FICA tax refers to the Federal Insurance Contribution Act tax which is Country U.S law that creates…

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

A: SOLUTION- DEFERRED TAX ASSETS- IT IS AN ITEM ON THE BALANCE SHEET THAT RESULT FROM OVER PAYMENT OR…

Q: deferred tax asset and a deferred tax liability

A: Deferred tax asset refers to the items that were shown as a result of extra payment of taxes.…

Q: When a person is claimed as a dependant by another taxpayer, qualified tuition and expenses paid by…

A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…

Q: What is a permanent difference? Give an example What is a temporary difference? Give an example. How…

A: 1) Difference between the tax expense and tax payable which is caused by an item which does not…

Q: What Is A Deferred Tax Liability And What Is Its Purpose?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Discuss actions a taxpayer can take if it is anticipated that his income taxes will be substantially…

A: Underpaid Tax situation usually arrives when the taxpayer is not paying the estimated tax amount.…

Q: What is a deferred tax liability?

A: Deferred tax liability arises due to the difference in the amount of accounting income and taxable…

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: Because income from fixed income assets is taxed at a higher income tax rate than capital gains and…

A: Capital gain is the revenue generated from selling the assets either long term assets and short term…

Q: A taxpayer gives the following reasons in refusing to pay a tax. Which of these reasons is not…

A: An Individual who is eligible to pay taxes on his) her income towards the government, as being the…

Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…

A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…

Q: hich is not a requisite for deductibility in general? Group of answer choices subjected to withh

A: Deductible expenses are expenses a company can subtract from its income before it is subject to…

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

A:

Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…

A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…

Q: Define Deferred Tax Liabilities.

A: Definition:   Income tax expense: The expenses which are related to the taxable income of the…

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

A: Deferred tax assets (DTA) is stated under the head of non- current assets whereas deferred tax…

Q: If the current tax expense is greater than the total income tax expense during the period, there…

A: Total income tax expense is the expense which are payable by the taxpayer which has not been…

Q: Why is the income tax payable not the same as income tax expense

A:

Q: Explain two main reasons why expenses may not be deductible for income  tax/corporation tax purposes

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

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…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.