Accounting for Income Tax Theories

A

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

a. Deferred tax liability

b. Deferred tax asset

c. Current tax liability

d. Current tax asset

B

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

a. Deferred tax liability

b. Deferred tax asset

c. Current tax asset

d. Current tax liability

A

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

a. Current tax expense

b. Total income tax expense

c. Deferred tax expense

d. Deferred tax benefit

A

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

a. Tax expense

b. Current tax expense

c. Deferred tax expense

d. Deferred tax benefit

B

The deferred tax expense is equal to

a. Increase in deferred tax asset less increase in deferred tax liability.

b. Increase in deferred tax liability less increase in deferred tax asset.

c. Increase in deferred tax asset.

d. Increase in deferred tax liability

C

An entity shall offset a deferred tax asset and liability

a. When the taxes are levied by a different taxing authority.

b. When the entity has no legal right to offset.

c. When the taxes are levied by the same taxing authority and the entity has a legal enforceable right to offset a current tax asset against a current tax liability.

d. Under all circumstances.

D

Which is correct about deferred tax assets and liabilities?

a. Current deferred tax assets are netted against current deferred tax liabilities.

b. All noncurrent deferred tax assets are netted against noncurrent deferred tax liabilities.

c. Deferred tax assets and liabilities are never netted.

d. Deferred tax assets are netted against deferred tax liabilities if they relate to the same tax authority.

A

Which is incorrect concerning tax asset and liabilities?

a. Deferred tax asset and liability shall be discounted.

b. Tax asset and liability shall be presented separately from other assets and liabilities.

c. Deferred tax asset and liability shall be distinguished from current tax asset and liability.

d. Deferred tax asset and liability are noncurrent.

A

All of the following must be disclosed separately, except

a. The tax bases of major items on which deferred tax has been calculated.

b. The amount of deductible temporary differences for which no deferred tax asset is recognized.

c. The amount of taxable temporary differences associated with investment in subsidiary and associate for which no deferred tax liability is recognized.

d. The amount of income tax relating to each component of other comprehensive income