1. Deferred income tax liabilities are amounts owed to the government True or False 2. Deferred...

1. Deferred income tax liabilities are amounts owed to the government True or False

2. Deferred taxes appear on a company's balance sheet as a result of inter-period tax True or False

3. "Taxable amounts" include revenues and gains that are included in the tax return BEFORE they are recognized for accounting purposes. True or False

4. Existing sufficient taxable temporary differences, which will result in taxable income, is one piece of evidence to support a more likely than not criteria. True or False

5. Two taxable permanent differences are Political contribution and 2) Golf club dues True or False

Expert Solution

1.Deferred tax liability is not a due which will be payable to government. It arises only because of timing differences. If carrying amount is greater than tax base, temporary difference arises and results in deferred tax liability.

Hence the answer is false.

2. Deferred taxes arises because of tax effect on the timing differences not because of inter period tax.

Hence it is a false statement.

4.An entity should recognise deferred tax assets only when it is probable that taxable profits wil available against which deductible temporary differences can be utilised.Existing sufficient taxable temporary differences which will result in taxable income is an example and is also a evidence to support a more likely than not.

5. No. Political contribution is allowable while calculating taxable profits and even gold club dues are also not classifiable into permanent differences. These are temporary differences.

ekkarill92 answered 4 weeks ago

which of the following statements concerning the classification of deferred tax assets and liabilities is true

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what...

Is it possible that deferred tax assets greater than deferred tax liabilities? In that case, what will be the treatment for the net amount when they offset against each other?

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of...

a.discuss the criteria for recognizing deferred tax assets and deferred tax liabilities under the provisions of fasb asc 740 b. compare and contrast the asset-liability method and the deferred method

Meaning to an analyst of increases in deferred tax liabilities

4. Which of the following is true with respect to deferred tax assets and deferred tax...

4. Which of the following is true with respect to deferred tax assets and deferred tax liabilities a. A permanent difference is always recorded as a deferred tax asset b. A valuation allowance is appropriate only when it is more likely than not that deferred tax asset will not be recognized c. All deferred tax assets and deferred tax liabilities are reported as noncurrent in the balance sheet d. A net operating loss gives rise to a deferred tax liability

1 - There are disclosures required relating to deferred tax amounts. Identify the requirements for such...

1 - There are disclosures required relating to deferred tax amounts. Identify the requirements for such disclosures. What would you do if you were asked by your manager to "leave out" these disclosures from the notes to the financial statements you are preparing? 2- Why do you think there is a difference in recording capital vs. operating leases? Do you think this difference is valid or should all leases be recorded the same?

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another...

Contrast deferred tax liabilities and deferred tax assets. Give examples of each. Also respond to another student's post. Write two to three large paragraphs

Which of the following statements is true about liabilities? a.Liabilities are the debt owed by a...

Which of the following statements is true about liabilities? a.Liabilities are the debt owed by a company. b.Liabilities equal assets plus stockholders' equity. c.Liabilities include insurance premium paid in advance. d.Liabilities arise when a company sells goods on account.

Net Income $5,000 Depreciation 2,500 increase in deferred tax liabilities 500 Decrease in account receivable ...

Net Income $5,000 Depreciation 2,500 increase in deferred tax liabilities 500 Decrease in account receivable 2,000 increase inventories 9,000 Decrease in Account Payable 5,000 increase in accrued liabilities 1,000 increase in property and equipment 14,000 increase in short term notes 19,000 decrease in long term bonds 4,000 Use the information above to answer the questions below What is the net cash flow from operating activities What is the net cash flow from investing activities What is the net cash...

why deferred tax assets/liabilities are reported in the balance sheet??

Question