Intra-period tax allocation is the allocation of the total income tax expense to the various revenues that brought about the tax and it gives rise to the recognition of deferred tax asset and deferred tax liability.     a. TRUE b. FALSE

Q: Which one of the following is correct as per section 4-10 of ITAA97 tax offsets? Select one:o are…

A: The taxable income for a company is calculated by adding all the taxable revenues, and deducting the…

Q: tax allocation

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

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 statements is NOT correct? O A. Taxable income and accounting profit may…

A: Option d is correct .

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: Which of the following is false? a.    Under GAAP, deferred taxes are reported based on the…

A:

Q: Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in…

A: The deferred tax asset or even the deferred tax liabilities are caused due to the variations in the…

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: Where the carrying amount of an asset or liability is different from the tax base a ‘temporary…

A: Temporary difference is occurre in one period and shall be reverse in subsequent period for tax…

Q: Which statement is incorrect concerning tax assets and liabilities? * . When an entity makes…

A: Deferred tax assets and liabilities is discounted is the incorrect statement from all the above…

Q: This is a prerogative of escaping or diminishing a tax liability through availment of ways allowable…

A: To reduce tax liability, two methods are there. One is tax evasion and other is tax avoidance. Tax…

Q: he deferred income tax liability: Top of Form Multiple Choice Is recorded whether or not the…

A: Deferred tax asset/liability results from temporary difference between the income tax recorded and…

Q: All of the following statements are correct concerning PAS 12 Income Taxes. Which is the exception?…

A: Following statements are correct concerning PAS 12 Income Taxes:1. Tax assets and liabilities…

Q: All of the following statements are correct concerning PAS 12 Income Taxes. Which is the exception?…

A: Solution:  Following statements are correct concerning PAS 12 Income Taxes: Tax assets and…

Q: What type of event would create a deferred tax asset and deferred tax liability?

A: Given: The difference in income tax from the currently payable tax.

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: It is the exploitation by the taxpayer of legally permissible alternative tax rates or methods of…

A: Tax is referred as the financial charges which is imposed by government on an individual’s income or…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

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: 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: 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: (Identify Temporary or Permanent Differences) Listed below are items that are commonly accounted for…

A: Given information is: We have to identify for the given cases that in which option they pertains to:…

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: a In a period in which a taxable temporary difference reverses, the reversal will cause taxable…

A: Since, we answer only upto three sub-parts, we will answer first three. Please resubmit a new…

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: Which of the following is an example of a temporary difference which would result in a deferred tax…

A: Solution: Rent revenue collected in advance included in taxable income before it is included in…

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: his is an item in the balance sheet relating to the unpaid portion of an income already taxed.…

A: Answer: Balance sheet consists of assets and liabilities as part of financials.

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

A:

Q: The deferred tax expense is the Select one: a. decrease in balance of deferred tax asset minus…

A: Lets understand the basics. When there is taxable temporary difference between the book profit and…

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: deferred tax liability uses    a. Expected future tax law, regardless of whether those expected laws…

A: Solution: Deferred tax liability is based on future taxable amounts which will be taxed in near…

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

A: The answer for the question on deferred tax liability or asset is discussed hereunder : What is…

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: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable…

A: The percentage of tax on the difference in the amount of accounting and taxable income is termed…

Q: A temporary difference which would result in a deferred tax asset is A. Interest revenue on…

A: Introduction: Temporary differences are those differences arising between accounting and taxable…

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: Distinguish between intraperiod tax allocation and interperiod tax allocation (deferred tax…

A: Inter period income tax allocation is defined as the income tax obligation of company as expense to…

Q: Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Which one of the following is correct as per section 4-10 of ITAA97 tax offsets? Select one: are…

A: The two main income tax assessment acts are ITAA 1936 (original) and ITAA 1997 (active on 1 July…

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: Which of the following statements is correct with regard to IFRS and GAAP? a.    Under GAAP, all…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are  reported for…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.