1.Indicate the type of Deferred Tax account created by Unearned Revenues and Accrued Expenses, respectively:

Select one:

a. Liability, Asset

b. Asset, Liability

c. Asset, Asset

d. Liability, Liability

2.Which of the following is a permanent difference between taxable and financial income?

Select one:

a. The receiving of advance rental payments

b. That portion of dividends reduced by the dividends received deduction by corporations under existing federal income tax law

c. The excess of accelerated depreciation used for tax purposes over straight-line depreciation used for financial reporting purposes

d. All differences between taxable income and financial statement earnings

2.The Palms company records a Deferred Tax Asset; it is likely that the DTA will not be realized due to doubtful future incomes. Palms properly records an Allowance account. Recording the allowance will increase

Select one:

a. Income Tax Expense

b. Income Tax Payable

c. Deferred Tax Liability

d. Benefit due to Loss Carry forward