Acct 328 – Taxes(Completely solved)
A difference between accounting and taxable incomes that does not reverse. correct answers
Permanent Difference
A contra asset account used to reduce deferred tax assets to the portion more likely than not to be
realized. correct answers valuation allowance
An allocation of tax among the components in the income statement and the statement of
comprehensive income. correct answers Intra period income tax allocation
May result in a reduction of income tax paid to taxing authorities in future periods. correct
answers NOL carryfoward
Current tax expense plus net changes in the deferred tax liability, deferred tax asset, valuation
allowance, and the unrecognized tax benefit balance sheet accounts. correct answers Income tax
expense
Accounted for using a balance-sheet approach. correct answers temporary difference
A deferred tax balance sheet amount that has a debit balance. correct answers DTA
The net of deferred tax assets, liabilities, and valuation allowance (relating to the same tax
jurisdiction) presented on the balance sheet as a noncurrent asset. correct answers non current net
DTA
An amount that represents a difference between GAAP and tax bases of an asset (liability) that
will increase taxable income in future periods relative to financial accounting income. correct
answers Taxable temporary difference
An amount used to compute the cash taxes owed to the taxing authority. correct answers taxable
income
A difference between accounting and taxable incomes that does not reverse. correct answers
Permanent Difference
A contra asset account used to reduce deferred tax assets to the portion more likely than not to be
realized. correct answers valuation allowance
An allocation of tax among the components in the income statement and the statement of
comprehensive income. correct answers Intra period income tax allocation
May result in a reduction of income tax paid to taxing authorities in future periods. correct
answers NOL carryfoward
Current tax expense plus net changes in the deferred tax liability, deferred tax asset, valuation
allowance, and the unrecognized tax benefit balance sheet accounts. correct answers Income tax
expense
Accounted for using a balance-sheet approach. correct answers temporary difference
A deferred tax balance sheet amount that has a debit balance. correct answers DTA
The net of deferred tax assets, liabilities, and valuation allowance (relating to the same tax
jurisdiction) presented on the balance sheet as a noncurrent asset. correct answers non current net
DTA
An amount that represents a difference between GAAP and tax bases of an asset (liability) that
will increase taxable income in future periods relative to financial accounting income. correct
answers Taxable temporary difference
An amount used to compute the cash taxes owed to the taxing authority. correct answers taxable
income
