How are the linked accounts for CPP different from the linked accounts for income tax - O a. CPP has a linked liability account only; income tax has an expense account only O b. CPP has a linked expense account only; income tax has a liability account only
Q: What events create permanent differences between accounting income and taxable income? What effect…
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Q: Which of the follwing types of tax may not be shifted a. Percentage Tax b. Excise Tax c. Income Tax
A: The answer is Option c. Income Tax Income tax cannot be shifted.
Q: 1.Briefly explain the concepts of temporary difference and permanent difference.
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Q: he deferred income tax liability: Top of Form Multiple Choice Is recorded whether or not the…
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Q: What type of event would create a deferred tax asset and deferred tax liability?
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A: The answer is as fallows
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A: The LIFO cost flow assumption can be used to reduce the taxable income by business.
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A: Answer: Option a.
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- 20. A temporary difference arises when a revenue item is reported for tax purposes in a period After it is reportedin financial income Before it is reportedin financial income No Yes No No Yes No Yes YesWhich of the following statements is / are correct?1. Some tax credits are refundable.2. Some tax credits are nonrefundable.a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.10. One of the following is not the major business internal revenue tax in the Тах Code. Value Added Tax Excise Tax on business a. C. Income tax b. d. Percentage tax CS Scanned with CamScanner
- 4- The deferred income tax liability: Top of Form Multiple Choice Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary. Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government. Is never recorded. Is a contingent liability. Can result in a deferred income tax asset.1. ) Which of the follwing types of tax may not be shifted a. Percentage Tax b. Excise Tax c. Income Tax 2.) Which pay is not tax exempt for a statutory minimum wage earner a. Holiday pay b. Commissions c. Overtime Pay d. Hazard Pay8. The amounts charged to income for bad debts on accounts receivable will generally be the same for both tax and accounting purposes True or False? 9 A self employed individual cannot deduct CCA on a home office in his principal residence unless it is used exclavely for income producing purposes. True or False?
- 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.Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. Code Letter Term Code Letter Term A. Future deductible amount H Deferred tax consequences B Income tax payable (or refund) I Future taxable amount Operating loss carryback Deferred tax liability D Valuation allowance K Temporary difference E Deferred tax asset Income tax expense (or benefit) F Operating loss carryforward M Deferred tax expense (or benefit) Taxable income Required: Indicate which term belongs with each definition by choosing the correct term. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively X 3. Temporary…T2. Account edit: there is no tax rate implied.
- 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( None of these answers is correct. By establishing a deferred tax asset O By creating an income tax refund receivable O By disclosing the amount in the footnotes 47. It means income (in the broad sense) excluding income which is by statutory provisions or otherwise exempt from the tax imposed by law. Gross Income None of the choices Net assets Net incomeQuestion 8: Which of the following is not a mandatory deduction from gross pay? Answer: A. Federal income tax withholding В. Union dues C. Social Security tax D. Medicare tax B.