For which of the following sources of income would the entire amount be required to be included in a business’ gross income and taxed in the current year? a. Prepaid rent received by a cash-method company b. Life insurance proceeds c. State and local bond interest d. None of the above

1. Which of the following statements is incorrect regarding deferred taxes? a. Income tax payable plus or minus the change in deferred income taxes equals total income tax expense. b. The deferred portion of income tax expense is the amount of change in deferred taxes related to the current period. c. In computing income tax expense, a company deducts an increase in a deferred tax liability to income tax payable. d. All of the choices are incorrect.   2. A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this liability is settled in 2022, a future taxable amount will: a. pretax financial income will exceed taxable income in 2022. b. the Company will record a decrease in a deferred tax liability in 2022. c. total income tax expense for 2022 will exceed current tax expense for 2022. d. will not be affected.   3. Assuming a 35% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting a…

Which of the following items IS included in gross income? O Municipal bond interest O Unemployment compensation received Scholarship for tuition and books O Inherited property

What is a key requirement for filing individual income tax returns? a) Providing proof of employment history b) Reporting all sources of income c) Submitting bank statements d) Listing personal expenses

List the four general categories of adjustments that a corporation makes to taxable incomes or net loss to compute current E and P. What is the rationale for making these adjustment?

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

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.

Which of the following statements is not correct? Multiple Choice Corporations must estimate and prepay their income taxes through quarterly tax deposits. At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes. Income Tax Expense may be shown as an operating expense on a corporation's income statement. The Income Tax Expense account may be either debited or credited in the adjusting journal entry for income tax at year-end.

Which of the following categories represent Deductions for AGI

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…