erence between financial income and taxable income?
Q: accounting income and taxable income?
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Q: What types of ordinary and statutory income do not constitute assessable income?
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Q: Find the gross income, the adjusted gross income, and the taxable income.
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Q: determine the net income
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Q: How much shall form part of the ordinary allowable itemized deductions from gross income?
A: Deductions are the amount of money which has been allowed by the tax authority through which the…
Q: What is the quantitative disclosure of lessee?
A: Lease Agreement: It is a contract between the owner of the asset (lessor) and the person who uses…
Q: What is comprehensive income, and what does it include?
A:
Q: What capital gains are subject to capital gains taxation?
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Q: Rate of income derived by the assessed is taxable under the head of ?
A: The income which a person can earn during the period or even during the lifetime as per income tax…
Q: How do I determine net income
A: Net Income/Loss earned during a particular period is computed by drawing the statement of Income for…
Q: WHAT IS THE TOTAL COMPREHENSIVE INCOME
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Q: Deductions from gross income are subtracted from gross income to derive taxable net income. TRUE OR…
A: Gross income is the aggregate total income that is received by a taxpayer that is not tax-exempt…
Q: How to prepare pro-forma income statement?
A: Income statement is a statement which shows all incomes, expenses for calculation of net profit or…
Q: Define accrual-basis net income.
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Q: What is the non-controlling interest in net income?
A: The net income of the subsidiary on multiplying with the percentage of Non-controlling interest(NCI)…
Q: What is comprehensive income?
A: Definition: Comprehensive Income: When there is a change in the total stockholder's equity from all…
Q: Income Taxation What did you learn in the subject income taxation
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Q: Should options given as part of compensationpackages be reported on the income statement asan…
A: Stock options are recognized as a compensation expense in the financial statements of a company.…
Q: What is the income under accrual basis?
A: Accrual basis is method used by the company to record its transaction in the books. In this method,…
Q: Tax as a source is classified as?
A: Solution Concept Tax is the major source of revenue oto the government of any nation There can…
Q: Distinguish between cash-basis net income and accrual-basis net income.
A:
Q: Definition of income measurement?
A: The income statement is one of the financial statement of the business.
Q: What is the net income What is the total comprehensive income/loss?
A: Comprehensive Income has all increases in equity over a lifetime, with the exception of those…
Q: What is meant by net income and net loss?
A: When the company has more amount of revenue it would have positive income whereas when company has…
Q: How do defreinciate between a accured income and prepaid income
A: Introduction: Accruals: Transactions recorded in the books but not yet received or paid cash called…
Q: allocation of income or loss to have economic effect
A: Income or loss is the net result of operational activities of a business conducted during a…
Q: What is taxable income?
A: Tax: A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…
Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…
A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…
Q: What is unearned income ,income recived in advance ?
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Q: What is the net income?
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: What is the income-statement approach?
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Q: Which items are NOT other comprehensive income?
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Q: What is the definition of gross income? “Gross income includes all income unless….”
A: As the name itself suggests that all kinds of incomes are included while computing gross income.
Q: What is the difference of net income and gross income?
A: The answer is provided as follows:
Q: What is the definition of 'taxable income'?
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Q: Classify Revenue or capital expenditure?
A: Introduction: Revenue Expenditure: Its a Recurring expenditure. Expenditure spent with in 12 months…
Q: What does it mean when you have a debit balance of accrued interest income? Does a Debit balance…
A: The accrued expenses are the expenses incurred but not paid yet and hence are recorded as liability.…
Q: What is the permanent difference between pretax accounting income and taxable income?
A: A permanent difference is a difference between pretax financial income and taxable income in an…
Q: Explain the difference between pretax financial income and taxable income.
A: Pretax financial income: Income that is computed based on the records and documents presented by an…
Q: income be affected
A: Operating income is the amount of revenue realized from the operations of the business, after…
Q: income taxation scheme
A: Option b is wrong because under capital gains tax scheme, it is the responsibility of the taxpayer…
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- 7. Which of the following creates a temporary difference between financial income and taxable income? A. premiums paid for officer's life insurance (company is the beneficiary). B. accelerated cost recovery on plant and equipment. C. interest on municipal bonds D. fines and violation of law. 8. An example of deductible temporary difference occurs when A. the completed contract method in revenue recognition is used for tax purposes but percentage of completion method is used for financial purposes. B. warranty expenses are recognized on the accrual basis for financial reporting purposes but recognized as the warranty conditions are met for tax purposes. C. the installment sales method is used for tax purposes but accrual method for financial accounting.Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits with bank. Excess of profit earned over the profit reported under the installment method for income tax purposes.Which of the following is a temporary difference that normally is recognized for accounting purposes before being reported as an expense for tax purposes? Unearned revenue Product warranty costs Depreciation Fines resulting from violations of the law.
- A temporary difference which would result in a deferred tax asset is A. Interest revenue on municipal bondsB. Accelerated depreciation for tax but straight line for accountingC. Tax penalty or surchargeD. Expenses deducted from accounting income but not deductible for tax purposesWhich of the following creates temporary difference between financial and taxable income? * Interest on treasury debt securities Accelerated depreciation on plant and equipment O Fines from vilation of law Premiums paid for officer's life insurance (comapny is beneficiary)A temporary difference that would not result in a deferred tax asset but not a permanent difference? a. accrual of commission income. b. excess of financial depreciation over tax depreciation. c. interest revenue on government bonds. d. accrued warranty expense.
- Which of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.Of the following temporary differences, which one ordinarily creates a deferred tax asset? O Installment sales for tax reporting. O Fines paid for violation of law. O Prepaid expenses. O Estimated warranty expense.For each item listed below, indicate whether it involves a: a. permanent difference. b. temporary difference that will result in future deductible amounts (giving rise to deferred tax assets). c. temporary difference that will result in future taxable amounts (giving rise to deferred tax liabilities). 1. Rent is collected in advance from a tenant. Rent is taxable when received. 2. Warranty costs are accrued at the time of sale for accounting purposes, but are not deductible until paid for income tax purposes. 3. Interest revenue is recorded on municipal bonds. 4. Installment sales are recognized at the point of sale for accounting purposes, but when the cash is received for income tax purposes. 5. A loss contingency is expensed for accounting purposes. The…
- Among the following transactions: municipal bond income. accrual of a loss contingency. a balance in the Unearned Rent account at year end. a fine resulting from violations of regulations. Which one(s) will result in a permanent difference in pretax financial income and taxable income? Enter 1, 2, 3, or 4 that represents the correct answer. b & c. d only. a & d. a, c, & d.Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Deductible insurance premiums paid in excess of insurance expense reported for financial reporting. Provision for loss on pending lawsuit expected to be settled during the next reporting period. Insurance premiums paid on life insurance policy where the entity is designated beneficiary. Impairment loss attributed to goodwill. Warranty expense reported for financial reporting purposes in excess of actual costs of repairs done during the period.A temporary difference that would result in a deferred tax liability is O Excess of tax depreciation over financial accounting depreciation. O Subscriptions received in advance. O Accrual of warranty expense. O Interest revenue on municipal bonds.