Deferred Tax MCQs

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






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






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






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Harrison Corporation entered into a 3-year contract, using the percentage-of-completion method for financial income and the completed contract method ...






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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)






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At the end of its first year in business, Pebbles Corporation reported pretax financial statement income of $50,000. Included in pretax income were $1...






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Intraperiod income tax allocation arises because






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






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






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






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Selected financial information for Windham, Inc., for the year just ended is shown below. Pretax income $5,000,000 Intere...






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Justification for the method of determining periodic deferred tax expense is based on the concept of






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Among the items reported on Cord, Inc.s income statement for the year ended December 31, year 1, were the following: Payment of penalty $ 5,000 In...






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Temporary differences arise when revenues are taxable After they are recognized in financial income Before they are recognized in financial income






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Which of the following differences would result in future taxable amounts?






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Dunn Co.s year 1 income statement reported $90,000 income before provision for income taxes. To compute the provision for federal income taxes, the...






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Pine Corp.s books showed pretax income of $800,000 for the year ended December 31, year 1. In the computation of federal income taxes, the followin...






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For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $750,000. Its taxable income was $650,000. The differ...






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On June 30, year 1, Ank Corp. prepaid a $19,000 premium on an annual insurance policy. The premium payment was a tax deductible expense in Anks yea...






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For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $750,000. Its taxable income was $650,000. The differ...






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Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, year 1, it...






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Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, year 1, it...






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West Corp. leased a building and received the $36,000 annual rental payment on June 15, year 1. The beginning of the lease was July 1, year 1. Renta...






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Black Co., organized on January 2, year 1, had pretax accounting income of $500,000 and taxable income of $800,000 for the year ended December 31, y...






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A temporary difference that would result in a deferred tax liability is






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Orleans Co., a cash-basis taxpayer, prepares accrual basis financial statements. In its year 2 balance sheet, Orleans deferred income tax liabiliti...






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At the end of year one, Cody Co. reported a profit on a partially completed construction contract by applying the percentage-of-completion method. B...






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A deferred tax liability is computed using






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For the year ended December 31, year 1, Grim Co.s pretax financial statement income was $200,000 and its taxable income was $150,000. The differenc...






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Shear, Inc. began operations in year 1. Included in Shears year 1 financial statements were bad debt expenses of $1,400 and profit from an installm...






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Quinn Co. reported a net deferred tax asset of $9,000 in its December 31, year 1 balance sheet. For year 2, Quinn reported pretax financial statemen...






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Rein Inc. reported deferred tax assets and deferred tax liabilities at the end of year 1 and at the end of year 2. For the year ended 12/31/Y2, Rein...






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On its December 31, year 2 balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determinin...






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Under current generally accepted accounting principles, which approach is used to determine income tax expense?






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Bart, Inc., a newly organized corporation, uses the equity method of accounting for its 30% investment in Rex Co.s common stock. During year 1, Rex...






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Leer Corp.s pretax income in year 1 was $100,000. The temporary differences between amounts reported in the financial statements and the tax return...






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Dix, Inc., a calendar-year corporation, reported the following operating income (loss) before income tax for its first three years of operations: Y...






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In year 1, Rand, Inc. reported for financial statement purposes the following items, which were not included in taxable income: Installment gain to...






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In year 1, Rand, Inc. reported for financial statement purposes the following items, which were not included in taxable income: Installment gain to...






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Because Jab Co. uses different methods to depreciate equipment for financial statement and income tax purposes, Jab has temporary differences that w...






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At the most recent year-end, a company had a deferred income tax liability arising from accelerated depreciation that exceeded a deferred income tax...






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On December 31, year 5, Oak Co. recognized a receivable for taxes paid in prior years and refundable through the carryback of all of its year 5 oper...






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The amount of income tax applicable to transactions that are not reported in the continuing operations section of the income statement is computed






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No net deferred tax asset (i.e., deferred tax asset net of related valuation allowance) was recognized in the year 1 financial statements by the Cha...






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Which of the following statements is correct regarding the provision for income taxes in the financial statements of a sole proprietorship?






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Which of the following is true regarding reporting deferred taxes in financial statements prepared in accordance with IFRS?






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Toller Corp. reports in accordance with IFRS. The controller of the company is attempting to prepare the presentation of deferred taxes on Tollers ...