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WorksheetsFARAP13 Income Taxes
Total questions: 22
Worksheet time: 12mins
The amount tax payable for the current period is based on the amount of accounting
income.
True
False
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
Deferred tax liability arises from there following:
Accounting income is higher than taxable differences due to timing differences
Carrying amount of asset is higher than it's tax base
Carrying amount of Liability higher than it's tax base
Carrying amount of Liability lower than it's tax base
Deferred tax liability arises from:
Reevaluation of asset
Goodwill resulting from business combination
Undistributed profit of subsidiary when parent is able to control the timing of reversal of the temporary difference
Cost of a business combination that is accounted for as an acquisition is Allocated to the identifiable assets at fair value
The deferred tax consequence attributable to a future deductible amount and operating loss carry forward
Deferred tax asset
Deductible temporary difference
Deferred tax benefit
Deferred tax liability
Deferred tax asset arises from there following:
Accounting income is lower than taxable differences due to timing differences
Carrying amount of asset is lower than it's tax base
Carrying amount of Liability higher than it's tax base
Carrying amount of Liability lower than it's tax base
Deferred tax liability shall be recognized for all taxable temporary differences
True
False
Deferred tax asset shall be recognized for all deductible temporary difference.
True
False
All temporary differences are timing differences.
True
False
The total income tax expense for the year is equal to the accounting income subject to tax multiplied by the rate, assuming there is a future enacted rate
True
False
A current tax liability or current tax asset shall be measured using the tax rate that has been ended and effective at the end of the reporting period
True
False
The entity shall offset a deferred tax asset against a deferred tax liability when:
Deferred tax asset and deferred tax liability related to income taxes levied by different tax authority
If those income taxes are levied by the same tax authority
If the entity has a legal enforceable right to set off a current asset against a current tax liability
Not allowed
Deferred tax assets and liabilities are classified as current if expected to reverse within 12 months after the reporting date.
True
False
It is the recognition of deferred tax asset and deferred tax liability
Interperiod Tax Allocation
Intra Period Tax Allocation
