TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is a future deductible amount and therefore there is a deferred tax asset.

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 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: Which of the following is the most likely item to result in a deferred tax asset?

A: Unearned revenue is the most likely item to result in a deferred tax asset.  Unearned revenue means…

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: 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: 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: 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: 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: 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: 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: Which of the following payment is a capital expenditure and not deductible under profits tax?

A: 1(a)  Payment to a departing employee agree for not competing with the company.   1(b)  1,3 and 4…

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: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: What is a deferred tax asset and how is the value created?

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

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: A temporary difference which would result in a deferred tax liability is O excess of tax…

A: Introduction:- A deferred tax liability represents an obligation to pay taxes in the future.…

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: Which of the following is not a source of support for the occurrence of a deferred tax liability?…

A: Solution: Future deductible temporary differences is not a source of support for the occurrence of a…

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

A:

Q: What is the difference between a future taxable amount and a future deductible amount? When is it…

A:

Q: Define Deferred tax liability.

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

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: 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: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Permanent difference refers to those differences that are caused by transactions and events that…

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: 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: The key to reducing one's tax liability is to a. reduce taxable income b. reduce gross income

A: Tax liability of an individual can be reduced by lowering its taxable income. After calculating for…

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

A:

Q: Which of the following is not a source of support for the realization of a deferred tax asset?…

A: Future expiration of temporary exemptions is not a source of support for the realization of 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: 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: fringe benefit tax

A: Tax deduction refers to the claims which are to be made as a reduction in the amount of taxable…

Q: An unused tax loss will arise when:   a. Expenses deductible for tax purposes are less than the…

A: Taxable income is the one upon which a tax percentage is charged as per the tax bracket to be paid…

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: What is the burden of the tax? Explain the key factors that determine the incidence of the tax.

A:

Q: Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to…

A: Solution:- A valuation allowance is used for the purpose of offsetting deferred tax asset. The…

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: Which of the following results to a deferred tax liability? When the carrying amount of an asset is…

A: Solution: "None of the choices" results to a deferred tax liability. this is because When the…

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…