Question (3) Is entertainment expense likely to be reported differently on the business tax return than on the busines financial statements? O Yes, entertainment expense is typically higher on the tax return. O Yes, entertainment expense is typically lower on the tax return. O No, entertainment expense is typically the same on both the tax return and the financial statements. Bookmark for review

True (t) or False (f) ______ The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial accounting purposes.

The following relates to the different income components: Employment or loss Business income or loss Property income or loss Capital gain or loss Use the above details to answer questions 11 and 12. What are the most possible sources of income to a business, corporation or trust?   Question 8 options:   a)  i, ii and iii   b)  ii, iii and iv   c)  i and iv   d)  All of the above

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…