答案和详解如下： 1.Which of the following statements about deferred taxes is FALSE? Deferred taxes: A) arise primarily due to differences between GAAP and IRS code. B) can relate to either permanent or temporary differences. C) can be found on both the asset and liability side of the balance sheet. D) may never “reverse” in the case of companies that are growing. The correct answer was Permanent difference will not result in deferred taxes since they are not expected to reverse in the future.
2.Temporary differences in taxable and pretax income: A) will always be reversed. B) may result in lower current taxes payable and higher future taxes payable. C) are not reported on the balance sheet. D) result only in current deferred tax assets and liabilities. The correct answer was B) Temporary differences will result in current lower (higher) taxes payable and future higher (lower) taxes payable. These differences will be categorized as deferred tax assets and liabilities and will be stated on the balance sheet. The temporary differences must be reversed, but in some cases management does have discretion over the time and amount of reversal.
3.Which of the following statements regarding differences in taxable and pretax income is TRUE? Differences in taxable and pretax income that: A) result in deferred taxes are called permanent differences. B) increase or reduce the effective tax rate are called temporary differences. C) result in deferred taxes are called temporary differences. D) are not reversed for five or more years are called permanent differences. The correct answer was C) The permanent differences are never reversed, while there is no time limit on temporary differences to reverse. Permanent differences never result in tax deferrals; temporary differences always result in deferred tax assets or liabilities.
4.Permanent differences in taxable and pretax income: A) are considered as changes in the effective tax rate. B) can be deferred in some cases. C) are reported on both tax returns and financial statements. D) are reported on tax returns only. The correct answer was A) The permanent differences are never deferred but are considered increases or decreases in the effective tax rate. If the only difference between the taxable and pretax incomes were a permanent difference, then tax expense would simply be taxes payable.
5.Enduring Corp. operates in a country where net income from sales of goods are taxed at 40 percent, net gains from sales of investments are taxed at 20 percent, and net gains from sales of used equipment are exempt from tax. Installment sale revenues are taxed upon receipt. For the year ended December 31, 2004, Enduring recorded the following before taxes were considered: §
Net income from the sale of goods was $2,000,000, half was received in 2004 and half will be received in 2005. §
Net gains from the sale of investments were $4,000,000, of which 25 percent was received in 2004 and the balance will be received in the 3 following years. §
Net gains from the sale of equipment were $1,000,000, of which 50 percent was received in 2004 and 50 percent in 2005. On its financial statements for the year ended December 31, 2004, Enduring should apply an effective tax rate of: A) 22.86% and increase its deferred tax liability by $1,000,000. B) 22.86% and increase its deferred tax asset by $1,000,000. C) 8.57%. D) 26.67% and increase its deferred tax liability by $1,000,000. The correct answer was A) Total taxes eventually due on 2004 activities were (($2,000,000 * 0.40) + ($4,000,000 * 0.20) =) $1,600,000. Permanent differences are adjusted in the effective tax rate, which is ($1,600,000 / $7,000,000 =) 22.86%. Of the $1,600,000 taxes due, (($2,000,000 * 0.50 * 0.40) + ($4,000,000 * 0.25 * 0.20) =) $600,000 were paid in 2004 and $1,000,000 ($1,600,000 - $600,000) is added to deferred tax liability. | 
发表于 2008-4-18 15:10
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