Income Taxes - Chpt 18

what rules are followed for income tax expense

GAAP

what rules are followed for income tax payable

internal revenue code

what does pretax financial income turn into

income tax expense

what does taxable income turn into

income taxes payable

when income tax expense is greater than income taxes payable, what account increases

deferred tax liability

what is a temporary difference

difference between the tax basis of an A/L and its reported (carrying/book) amount in the financial statements

what does a deferred tax liability represent

increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year

what does a deferred tax asset represent

increase in taxes refundable/saved in future years as a result of deductible temporary differences existing at the end of the current year