答案和详解如下： 1.If a firm uses accelerated depreciation for tax purposes and straight-line depreciation for financial reporting, which of the following results is least likely? A) A temporary difference will result between tax and financial reporting. B) Income tax expense will be greater than taxes payable. C) A deferred tax liability will result. D) A permanent difference will result between tax and financial reporting. The correct answer was D) A permanent difference between tax and financial reporting is a difference that is expected to not reverse itself. Under normal circumstances, the effects of the different depreciation methods will reverse.
2.Which of the following best describes valuation allowance? Valuation allowance is a reserve: A) against deferred tax assets based on the likelihood that those assets will not be realized. B) against deferred tax liabilities based on the likelihood that those liabilities will be paid. C) created when deferred tax assets are greater than deferred tax liabilities. D) created when deferred tax liabilities are greater than deferred tax assets. The correct answer was A) Valuation allowance is a reserve against deferred tax assets based on the likelihood that those assets will not be realized. Deferred tax assets reflect the difference in tax expense and taxes payable that are expected to be recovered from future operations.
3.Which of the following statements is TRUE? Income tax expense: A) includes taxes payable and deferred income tax expense. B) and income tax paid are similar. C) is the amount of taxes due to the government. D) is the reported net of deferred tax assets and liabilities. The correct answer was A) Income tax expense is defined as expense resulting from current period pretax income. It includes taxes payable and deferred income tax expense. Income tax paid is the actual cash flow for income taxes, including payments or refunds for other years and may differ from income tax expense. Taxes payable are the amount of taxes due the government.
4.Which of the following statements about tax deferrals is FALSE? A) Income tax paid can include payments or refunds for other years. B) Tax deferrals are created due to the difference in financial and tax accounting. C) A deferred tax liability is expected to result in future cash outflow. D) Taxes payable are determined by pretax income and the tax rate. The correct answer was D) Taxes payable are the taxes due to the government and are determined by taxable income and the tax rate. Note that pretax income is income before tax expense and is used for financial reporting. Taxable income is the income based upon IRS rules that determines taxes due and is used for tax reporting.
5.The difference between income tax expense and taxes payable is a: A) deferred tax asset. B) deferred tax liability. C) timing difference. D) deferred income tax expense. The correct answer was D) Taxes payable is defined as the taxes due to the government as determined by taxable income and the tax rate, while income tax expense is the amount actually recognized on the income statement. Deferred income tax expense is defined as the difference in income tax expense and taxes payable. Each individual deferred item is expected to be paid (or recovered) in future years.
6.A tax loss carryforward is best described as the: A) net taxable loss that can be used to refund paid taxes from the previous year. B) difference of deferred tax liabilities and deferred tax assets. C) difference of taxes payable and income tax paid. D) net taxable loss that can be used to reduce taxable income in the future. The correct answer was D) A tax loss carryforward is the net taxable loss that can be used to reduce taxable income in the future. | 
发表于 2008-4-18 15:00
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