Question
1) The deferred tax expense is the - increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. -
1) The deferred tax expense is the
- increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. |
- decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. |
- increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. |
- increase in balance of deferred tax asset minus the increase in balance of deferred tax liability.
|
2) At the December 31, 2010 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2011, a future taxable amount will occur and
- total income tax expense for 2011 will exceed current tax expense for 2011. |
- pretax financial income will exceed taxable income in 2011. |
- Unruh will record a decrease in a deferred tax liability in 2011. |
- Unruh will record an increase in a deferred tax asset in 2011. |
3) An example of a permanent difference is
| - proceeds from life insurance on officers. |
| - interest expense on money borrowed to invest in municipal bonds. |
- insurance expense for a life insurance policy on officers. |
| - all of these. |
4) Recognition of tax benefits in the loss year due to a loss carryforward requires
| - the establishment of an income tax refund receivable. |
| - only a note to the financial statements. |
| - the establishment of a deferred tax liability. |
| - the establishment of a deferred tax asset. |
5) A deferred tax liability is classified on the balance sheet as either a current or a noncurrent liability. The current amount of a deferred tax liability should generally be
| - totally eliminated from the financial statements if the amount is related to a noncurrent asset. |
| - the net deferred tax consequences of temporary differences that will result in net taxable amounts during the next year. |
| - the total of all deferred tax consequences that are not expected to reverse in the operating period or one year, whichever is greater. |
| - based on the classification of the related asset or liability for financial reporting purposes.
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6)All of the following are procedures for the computation of deferred income taxes except to
| - identify the types and amounts of existing temporary differences. |
| - measure the total deferred tax liability for taxable temporary differences. |
| - measure the total deferred tax asset for deductible temporary differences and operating loss carrybacks. |
| - All of these are procedures in computing deferred income taxes. |
Answer only if you are 100% sure.. thanks alot
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