Q1. 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) created when deferred tax assets are greater than deferred tax liabilities. C) against deferred tax liabilities based on the likelihood that those liabilities will be paid.
Q2. 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) Income tax expense will be greater than taxes payable. B) A temporary difference will result between tax and financial reporting. C) A permanent difference will result between tax and financial reporting.
Q3. 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) net taxable loss that can be used to reduce taxable income in the future. C) difference of deferred tax liabilities and deferred tax assets.
Q4. The difference between income tax expense and taxes payable is a: A) deferred tax liability. B) timing difference. C) deferred income tax expense.
Q5. Which of the following statements about tax deferrals is FALSE? A) A deferred tax liability is expected to result in future cash outflow. B) Taxes payable are determined by pretax income and the tax rate. C) Income tax paid can include payments or refunds for other years.
Q6. Which of the following statements is TRUE? Income tax expense: A) includes taxes payable and deferred income tax expense. B) is the amount of taxes due to the government. C) is the reported net of deferred tax assets and liabilities.
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发表于 2009-1-19 10:34
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