A company uses the equity method to account for an investment for financial reporting purposes. This would result in what type of difference and in what type of deferred incon Oa. Type of Difference Permanent Ob Ives of Difference Permanent O. Ise of Difference Temporary Od. Type of Difference Temporary Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability

Specified investment business income does not include... Multiple Choice Dividends Rents Interest G Capital gains Prev. 1 of

Which of the following is an example of a tax credit available to businesses? A) Depreciation B) Net operating loss carryforward C) Research and development (R&D) tax credit D) Business expenses

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Which are segments are reportable segments?  Is there a sufficient number of reportable segments disclosed?  If the company is a non public entity, which segments are required to be disclosed?

A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible amounts are expected to be applied against future taxable income. b. Requires evidence that it is more likely than not that none of the deferred tax asset will be realized. c. Is a contra asset account shown on the tax return. d. Is likely to be recognized if a company expects losses in early future years.

A temporary difference which would result in a deferred tax liability is a) installment sale included in accounting income at the time of sale but not in tax incomeb) subscription received in advancec) research cost is recognized as expense in accounting income but not in tax incomed) Dividend revenue on equity investment

1. Under IFRS companies are required to provide a reconciliation between actual tax expense and the applicable tax rate. The purpose(s) of this reconciliation include I.    Making better prediction of future cash flow. II.  Predicating future cash flows for operating loss carryforwards. III. Assessing the composition of the net deferred income tax liability. IV. Assessing quality of earnings. Select one: a.I, II, III and IV. b.I, III, and IV only. c.I, II and IV only. d.I and IV only.     2. Under IFRS deferred tax assets are recognized for I.    Deductible temporary differences. II.  Deductible permanent differences. III. Operating loss carryforwards. IV.  Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only. d.I, II, and III.   3. In determining whether to adjust a deferred tax asset, a company should   Select one: a.pass a recognition threshold, after assuming that it will be audited by taxing authorities. b.take an aggressive approach…

In computing net business income for income tax purposes, which of the following statements is INCORRECT? Question 3Answer a. Income tax paid is not allowed as a business deduction. b. Depreciation is not allowed as a business deduction. c. Capital cost allowance is not allowed as a business deduction. d. An arbitrary reserve is not allowed as a business deduction.

What is the accounting treatment for discontinued operations? A :    It is reported at its gross amount as an "other revenue or gain" or "other expense or loss".    B :    It is reported as an "other revenue or gain" or "other expense and loss", net of tax.    C :    It only needs to be disclosed in the footnotes of the financial statements.    D :    It may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).