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1. T F A temporary difference is the difference...

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1. T F A temporary difference is the difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable amounts or deductible amounts in future years. 2. T F A deferred tax liability is the deferred tax consequences attributable to temporary taxable differences. 3. T F Temporary differences are those that will eventually be reversed, even if it takes 20 years. 4. T F Municipal bonds that are tax-exempt are an example of a permanent difference. 5. T F A permanent difference is one that will take more than 25 years to correct or reverse. 6. T F A deferral that will result in a reduction in taxes is known as a deferred tax benefit. 7. T F One objective of accounting for income tax is to recognize the amount of taxes payable or refundable for the current year. 8. T F When you know of a change in tax rates, you should make a change in the deferred taxes in the year you become aware of the change. 9. The term ?NOL? means a. Not On Loan b. Net Operating Loss c. Never Operating Longer d. No Onions Left 10. T F When you have a NOL you can use the amount to reduce the amount of taxes owed for a given period. 11. T F The amount that can be reduced can either be carried back 5 years or forward 10 years. 12. T F A deferred tax occurs when you have a difference between the amount owed on the financial statements from the amount shown as being owed on the tax return. 13. T F A deferred tax asset is due to the increase in taxes payable in future years. 14. T F A deferred tax liability does not have to be related to a transaction that has already occurred. 15. T F A deferred tax asset will only result from a transaction that will occur in the future,Thank you!!! Please explain the question if answer is fault. :)

 

Paper#4979 | Written in 18-Jul-2015

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