FARAP13 Income Taxes

The amount tax payable for the current period is based on the amount of accounting

income.

• True

• False

Answer explanation

Amount of tax payable for the current period is the current tax expense, which is only a component of Total tax expense (Accounting income x Tax rate)

Which entities are required to apply deferred tax accounting?

• Public Entities

• Non public Entities

• Both public and non public

• Neither public entities nor non public entities

It is the profit for a period determined in accordance with the rules established by tax authorities upon which income taxes are payable.

• Accounting profit

• Taxable profit

These are differences that will result in future taxable amount in determining taxable profit of future periods.

• Temporary differences

• Taxable temporary differences

• Deductible temporary differences

• Permanent differences

These are differences that result in future deductible amount in determining taxable profit in future period.

• Taxable temporary differences

• Deductible temporary differences

• Taxable temporary and permanent differences

• Deductible temporary and permanent differences

It is the deferred tax consequence attributable to a taxable temporary difference

• Deferred tax liability

• Deferred tax asset

• Current tax liability

• Current tax asset

It is the deferred tax consequence attributable to a deductible temporary difference and operating loss carryforward

• Deferred tax liability

• Deferred tax asset

• Current tax liability

• Current tax asset

It is the amount of income tax payable in respect of taxable profit

• Current tax expense

• Total income tax expense

• Deferred tax expense

• Deferred tax benefit

It is the aggregate amount included in the determination of net profit for the period in respect of current tax and deferred tax.

• Tax expense

• Current tax expense

• Deferred tax expense

• Deferred tax benefit

The deferred tax liability is equal to

• Increase in deferred tax asset less increase in

  deferred tax liability.

• Increase in deferred tax liability less increase in

  deferred tax asset.

• Increase in deferred tax asset

• Increase in deferred tax liability