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Deferred tax PGDA671

Total questions: 12

Worksheet time: 9mins

Name
Class
Date
1.

Deferred tax relates to the future tax consequences that will arise from the future recovery of assets and the settlement of liabilities.

a)

True

b)

False

2.

VAT is included within the scope of IAS 12.

a)

True

b)

False

3.

The definition of the tax base of an asset is the amount that will be deductible for tax purposes

a)

True

b)

False

4.

The tax base of debtors is 0

a)

True

b)

False

5.

Income received in advance is an exception to the definition of the tax base of a liability.

a)

True

b)

False

6.

A taxable temporary difference results in a deferred tax liability.

a)

True

b)

False

7.

The sale intention for investment property can never be rebutted.

a)

True

b)

False

8.

The tax base of a right-of-use asset will always be 0

a)

True

b)

False

9.

Deferred tax should be discounted and split between its non-current and current portion.

a)

True

b)

False

10.

Revalued asset + No wear and tear + use intention = Full deferred tax balance is exempt

a)

True

b)

False

11.

Only the above cost portion will be taxed at the effective CGT rate if intention is sale.

a)

True

b)

False

12.

What concept of deferred tax did you struggle with in previous years?

4 lines