The tax treatments of assets affects the risk structure of assets True False

Q: Unrealized los

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: cases would affect the current assets portion of the balance sheet

A: First option is wrong because when Current Tax Expense > Tax Payments, there is a current…

Q: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

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: 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 is inventory management important in tax planning

A: why is inventory management important in tax planning answer tax planning means the planning of tax…

Q: What is the logic behind allowing tax loss carrybacks/carryforwards?

A: Logic behind allowing tax loss carrybacks and carryforwards: A tax loss carryback permits a company…

Q: added to the financial income in computing for the taxable income?

A: First option is wrong because the unrealizable gains from trading securities is to be deducted from…

Q: What is a valuation allowance for deferred tax assets

A: A deferred tax asset is the opposite of a deferred tax liability, which can increase the amount of…

Q: The tax treatments of assets affects the risk structure of assets True False

A: The composition of a company's asset helped in determining how the balance of long-term credits and…

Q: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting…

A: The implication of the rules of conceptual frame work will helpful to create best standard in the…

Q: What is the difference between tax avoidance and tax evasion?

A: The answer for the theory question on the difference between tax avoidance and tax evasion is…

Q: Define tax loss carryback and carryforward

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: What is the valuation allowance for deffered tax asset

A: Deferred tax asset(DTA) arises due to payment of higher tax in current year due to the variance…

Q: The value of property for tax purposes, usually a percentage of the fair market value is known as…

A: Appraisal value refers to that on a specific date, the specific property’s current market value is…

Q: How is tax accounting different from financial accounting?

A: Accounting: It can be defined as the process of summarizing and recording the company’s financial…

Q: Which of the following need not be disclosed in the financial statements or the notes thereto?…

A: A contingent liability is a liability that may arise as a result of the outcome of a future event…

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: why the tax expense show in the income statement are different from tax paid in cash flow statement

A: Tax:   It is a compulsory payment imposed on individuals or entities on the basis of their income…

Q: Which of the following items isreported net of related income taxes?a. Gain or loss from…

A:

Q: Describe Tax Depreciation Methods?

A: Depreciation is a non-cash expense for the company. The depreciation expenses is charged because the…

Q: Difference between the tax treatment of the purchase of a capital asset, such as a machine vs the…

A: There are various types of expenses which is incurred by the businessman in order to conduct it…

Q: appropriate data into the tax-accounting program. What are the values of B, n, and S in depreciating…

A: B = Purchase price + Transportation cost + Installation cost  S = 10% of purchase price  n =…

Q: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting…

A: The implication of the rules of conceptual frame work will helpful to create best standard in the…

Q: Briefly explain what factors significantly affect tax avoidance

A: Tax avoidance is a mechanism through which a taxpayer takes advantages of the loopholes in the tax…

Q: A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible…

A: A valuation allowance is a counter-account to a deferred tax asset account that reflects the amount…

Q: Describe the procedure to incorporate the tax effects of gains (or losses) whenever an asset is…

A: Asset are considered to be capital items as they are held for more than a year and provide economic…

Q: What are the benefits of calculating depreciation differently for financial reports and for tax…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: Is unrealized loss deducted in marketable equity securities held as financial asset at fair value…

A: Yes ,unrealized loss reported  as component of other comprehensive income and marketable equity…

Q: what are the main objectives of the deferred tax asset approach?

A: Items on a company's balance sheet that may be used to reduce taxable income in the future are…

Q: how company's financial statement reflects the potential tax avoidance? For example?

A:

Q: The tax laws treat capital gains and losses differently from ordinary gains and losses. True or…

A: Ordinary income and capital gains income are the two broad categories of income in the tax code.…

Q: nonmonetary?

A: Nonmonetary items are the items that are subject to change in value over a period of time. These…

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: 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: When accounting standards require an asset to be expensed immediately but tax rulesrequire the item…

A: A deferred tax asset or DTA is recorded on the balance sheet of the company which results from…

Q: Why do deferred tax assets arise? Explain your answer with suitable example.

A: Item on an organization's monetary record that might be utilized to diminish tax for later are…

Q: How, and why, does the depreciation reported for tax purposes differ from that reported in the…

A: Depreciation is the amount to be written off periodically to charge the decline in value of a fixed…

Q: The income tax rates are the same for capital gains and depreciation recapture of an asset that is…

A: The question is related to true or False.The income tax rates are the same on capital gains and…

Q: Which of the following has a different treatment for cash and accrual basis of tax accounting?…

A: Under cash basis accounting, the transactions are recorded when the income is actually received or…