Deferred income taxes result from: a. The fact that bond interest is deductible in the computa-tion of taxable income. b. Depositing income taxes due in future years in a specialfund managed by an independent trustee.c. Differences between certain revenue and expense itemsrecognized in financial statements but not in income taxreturns.d. The inability of a bankrupt company to pay its incometax liability on schedule.

Q: Unrealized los

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

Q: e journal entry required to record the tax effect of the revaluation. a. None of answers given b.…

A: Revaluation has been the process of adjusting a fixed asset class book value to its own current…

Q: A company has only one deductible temporary difference due to the use of the current expected credit…

A: Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of…

Q: Which of the following statements accurately describes the impact of accounting for bad debts on…

A: This question pertains to the impact of accounting for bad debts on taxes. Bad debts occur when a…

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

Q: The carry forward periods for losses varies with the type of loss. Briefly describe the carry…

A: A tax loss carry forward is a provision that allows to the taxpayer to move a loss of tax to coming…

Q: PLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes…

A: Temporary differences are defined as differences between the carrying amount of assets and…

Q: Under IFRS when a change in the tax rates is enacted I.    Companies should record its effect on…

A: Under IFRS, companies report the effect of changes in tax rates on deferred tax accounts in the…

Q: temporary difference that would result in a deferred tax liability is O Excess of tax depreciation…

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

Q: Discontinued operations, and unusual gains and losses are both reported net of tax in the income…

A: Lets understand the basics.Discontinued operation is a operation which is closed by the business. In…

Q: taxable income

A: Income tax is payable by every person that crosses the tax-exempted threshold. However, various…

Q: Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income. reported on…

A: M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the…

Q: When assessing realizability of deferred tax assets, management must consider positive and negative…

A: The objective of the question is to identify which of the given options would not be considered as…

Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)…

A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for…

Q: contingency that need not be disclosed in the financial statements

A: Contingency is the probable obligation or receivable that may arise in future which depends on the…

Q: The tax law requires that capital gains and losses be separated from other types of gains and…

A: Short-term capital lose are allowed to be setoff against both long-term gain and short-term…

Q: Why should executory contracts be disclosed in the financial statements? Group of answer choices…

A: Executory contracts are contracts under which neither party has performed any of its obligations or…

Q: When a company pays taxes that were previously recorded as a deferred tax liability, the temporary…

A: The objective of the question is to understand the impact on the temporary difference when a company…

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: The concept of Deferred Tax arises, due to the timing difference between income as per the…

Q: 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( O…

A: When a company suffers net operating loss in the current year, it can set off this loss against the…

Q: hy do companies choose to accelerate depreciation on their tax return and not on their income…

A: Depreciation is the decrease in value of assets and in accerlated method there is more depreciation…

Q: Which of the following is true

A: The correct answer is 2. Investments in stocks of other companies accounted for using the equity…

Q: Which of the following may be a current liability? Withheld Income Taxes Deposits Received from…

A: The liabilities are classified as current liabilities and long term liabilities.

Q: TRUE OR FALSE? 1st statement: MCIT will be imposed if the company's business operation resulted in…

A:

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: 43. True or False. If the debt is canceled due to services rendered by the debtor, the basis of tax…

A: There are cases and instances in which a debtor renders services and in lieu of these services the…

Q: The Cohan rule has to do with: 1) Tax accounting methods 2) Debts of another taxpayer 3)…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: A deferred tax account is classified on the balance sheet as: A net noncurrent amount A net current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Long-term debt intended to be repaid from tax levies or special assessments is recorded in debt…

A: Long-term debt that is intended to be repaid from tax levies or special assessments is typically…

Q: Taxpayers can deduct a nonbusiness bad debt beginning in the year it is deemed partially worthless.…

A: If a debt relating to a company or occupation has been irrecoverable in the previous financial year,…

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: Which of the following differences would result in future taxable amounts? a. Revenues or gains…

A: Revenues or gains that are taxable after they are recognized in financial income. Should be results…

Q: If tax laws allow a company to postpone paying taxes on activities reported in the current period’s…

A: Deferred Tax Liability: Deferred Tax Liability can be created upon occurrence of difference…

Q: In deferred tax company, what is the differences between deferral and liability methods?

A: Deferred tax is a term used in accounting to describe the difference between the amount of tax that…

Q: A temporary difference which would result in a deferred tax liability is a) installment sale…

A: Definition: Deferred tax liability:- It is the liability of tax that a business has yet not paid in…

Q: Which of the following statements concerning the classification of deferred tax assets and…

A: A deferred tax asset (DTA) and a deferred tax liability (DTL) are accounting concepts related to the…

Q: IV.  Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only.…

A: Correct option:-  b. I, III, and IV only. Explanation:-  The reconciliation between actual tax…

Q: 2. When a reversal of a deferred tax liability occurs:

A: Deferred Tax Liability :A deferred tax liability occurs when a company reports higher taxable income…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.