Deferred Tax Paper 1

1

Which one of the following temporary differences will result in a deferred tax asset?






2

On a statement of financial position, all of the following should be classified as current liabilities except






3

A liability that represents the accumulated difference between the income tax expense reported on the firm’s books and the income tax actually paid is






4

Harrison Corporation entered into a 3-year contract, using the percentage-of-completion method for financial income and the completed contract method for taxable income. Harrison expected the project to be profitable throughout the construction period. The effect on Harrison’s financial statements for the third year of this contract would be a(n)






5

A tax rate other than the current tax rate may be used to calculate the deferred income tax amount on the statement of financial position if a(n)






6

At the end of its first year in business, Pebbles Corporation reported pretax financial statement income of $50,000. Included in pretax income were $10,000 of revenue from installment sales and depreciation expense of $12,000. On the tax return, $5,000 of installment sales revenue was reported, and depreciation expense of $16,000 was deducted. The income tax rate was 40%. Pebbles reports installment sales receivables as current assets. On its year-end statement of financial position, Pebbles should report deferred tax balances of






7

Intraperiod income tax allocation arises because






8

Income-tax-basis financial statements differ from those prepared under GAAP because they






9

When accounting for income taxes, a temporary difference occurs in which of the following scenarios?






10

When accounting for income taxes, a temporary difference occurs in which of the following scenarios?






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