Which of the following best describes how to account for the difference between a company's financial...

Which of the following best describes how to account for the difference between a company's financial income and taxable income, under generally accepted accounting principles?

Computation of deferred income tax based on temporary and permanent differences.

Computation of deferred income tax based on permanent differences.

Computation of income tax expense based on taxable income.

Computation of deferred tax assets and liabilities based on temporary differences.

Solutions

Expert Solution

Answer : Computation of deferred tax assets and liabilities based on temporary differences.

Explanation

Deferred Tax asset is Item on a company' s Balance sheet that is used to reduce taxable income in future year and Deferred tax liability is the opposite of Deferred tax asset ,which can increase the amount of income tax owed by company.

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Which of the following best describes accounting costs: Group of answer choices The difference between total...

Which of the following best describes accounting costs: Group of answer choices The difference between total economic costs and opportunity costs The sum of total economic costs and opportunity costs The best alternative use of resources Long run fixed costs

Which of the following best describes the difference between monetary policy and fiscal policy? Monetary policy...

Which of the following best describes the difference between monetary policy and fiscal policy? Monetary policy is quicker to implement but has a longer effect lag than fiscal policy. Monetary policy is slower to implement but has a longer effect lag than fiscal policy. Monetary policy is quicker to implement but has a shorter effect lag than fiscal policy. Monetary policy is slower to implement but has a shorter effect lag than fiscal policy.

Which statement best describes the difference between the charge of a polyatomic ion and the oxidation...

Which statement best describes the difference between the charge of a polyatomic ion and the oxidation states of its constituent atoms? (For example, the charge of NO−3 is 1-, and the oxidation states of its atoms are +5 for the nitrogen atom and -2 for each oxygen atom.) Which statement best describes the difference between the charge of a polyatomic ion and the oxidation states of its constituent atoms? (For example, the charge of is 1-, and the oxidation states...

1. Which of the following best describes a success scenario? - A statement that describes how...

1. Which of the following best describes a success scenario? - A statement that describes how certain decisions lead to success -A statement that defines what it means for the system to perform as intended -A statement of what could go wrong within a system -A statement of who, what, when, where and how a system would fail 2. Which of the following variable types represent measurable properties of a system itself? -Input Variables -Output Variables -Exogenous Variables -State Variables...

Which statement best describes the difference between special relativity and general relativity? a) Only the theory...

Which statement best describes the difference between special relativity and general relativity? a) Only the theory of general relativity includes gravity. b) The theory of general relativity describes the behavior of subatomic particles. c) The theory of special relativity applies only to very massive objects. d) Only the theory of special relativity includes gravity.

Which statement best describes the difference between special relativity and general relativity? a) Only the theory...

Which of the following best describes ribosomes?

Which of the following best describes ribosomes? Hollow cytoskeletal elements that act as organizers for the cytoskeleton, especially in cell division Contain digestive enzymes to breakdown non-functional organelles and foreign bodies that enter the cell The site of protein synthesis. Dense spherical body in the nucleus which are the synthesis site for ribosomal RNA and ribosomal subunits Houses all genetic material for the cell including DNA and RNA.

Which of the following statements best describes corporate goals? a. The proper goal of the financial...

Which of the following statements best describes corporate goals? a. The proper goal of the financial manager should be to attempt to maximize the firm’s expected cash flows, because this will add the most to the wealth of the individual shareholders. b. The riskiness inherent in a firm’s earnings per share (EPS) depends on the characteristics of the projects the firm selects, and thus on the firm’s assets. However, EPS is not affected by the manner in which those assets...

Which of the following best describes the goal of financial management? Select one: a. Maximisation of...

Which of the following best describes the goal of financial management? Select one: a. Maximisation of shareholder wealth b. Maximisation of profit c. Minimisation of risk d. Preparation of financial reports

Which statement below best describes the difference between quantitative and discrete traits: (a) discrete traits result...

Which statement below best describes the difference between quantitative and discrete traits: (a) discrete traits result from the action of many genes, while quantitative traits involve a single genetic locus (b) discrete traits cannot be categorized into a few distinct phenotypes (c) quantitative traits result from the action of many genes, while discrete traits involve a single genetic locus (d) quantitative traits can be easily categorized into a few distinct phenotypes

Subjects