CHAPTER 19ACCOUNTING FOR INCOME TAXES學(xué)習(xí)資料標(biāo)準(zhǔn)

1、CHAPTER 19ACCOUNTING FOR INCOME TAXESIFRS questions are available at the end of this chapter.TRUE-FALSEConceptualAnswerNo.DescriptionF1. Taxable income.F2. Use of pretax financial income.T3.Taxable amounts.T4. Deferred tax liability.F5.Deductible amounts.T6.Deferred tax asset.F7.Need for valuation a

2、llowance account.T8.Positive and negative evidence.F9.Computation of income tax expense. T10.Taxable temporary differences. F11.Taxable temporary difference examples.T12. Permanent differences.T13.Applying tax rates to temporary differences.F14.Change in tax rates. F15.Accounting for a loss carrybac

3、k.T16.Tax effect of a loss carryforward. T17.Possible source of taxable income. T18.Classification of deferred tax assets and liabilities.F19.Classification of deferred tax accounts. F20.Method used for accounting for income taxes.MULTIPLE CHOICEConceptualAnswerNo.Descriptionb21.Differences between

4、taxable and accounting income.c22.Differences between taxable and accounting income.b23.Determination of deferred tax expense.a24.Differences arising from depreciation methods.aP25.Temporary difference and a revenue item.bS26.Effect of future taxable amount.cP27.Causes of a deferred tax liability.dS

5、28.Distinction between temporary and permanent differences.bS29.Identification of deductible temporary difference.cS30.Identification of taxable temporary difference.dS31.Identification of future taxable amounts.c32.Identify a permanent difference.d33.Identification of permanent differences.d34.Iden

6、tification of temporary differences.d35.Difference due to the equity method of investment accounting.b36.Difference due to unrealized loss on marketable securities.a37.Identification of deductible temporary differences.d38.Identification of temporary difference.Test Bank for Intermediate Accounting,

7、 Fourteenth Edition19 - 2MULTIPLE CHOICEConceptual (cont.)AnswerNo.DescriptioncS39.Accounting for change in tax rate.c40.Appropriate tax rate for deferred tax amounts.b41.Recognition of tax benefit of a loss carryforward.a42.Recognition of valuation account for deferred tax asset.d43.Definition of u

8、ncertain tax positions.c44.Recognition of tax benefit with uncertain tax position.d45.Reasons for disclosure of deferred income tax information.c46.Classification of deferred income tax on the balance sheet.b47.Classification of deferred income tax on the balance sheet.d48.Basis for classification a

9、s current or noncurrent.d49.Income statement presentation of a tax benefit from NOL carryforward.cS50.Classification of a deferred tax liability.c51.Procedures for computing deferred income taxes.P These questions also appear in the Problem-Solving Survival Guide.S These questions also appear in the

10、 Study Guide.*This topic is dealt with in an Appendix to the chapter.MULTIPLE CHOICEComputationalAnswerNo.Descriptionc52Calculate book basis and tax basis of an asset.b53.Calculate deferred tax liability balance.a54.Calculate current/noncurrent portions of deferred tax liability.a55.Calculate income

11、 tax expense for the year.d56.Calculate amount of deferred tax asset to be recognized.c57.Calculate current deferred tax liability.b58.Determine income taxes payable for the year.d59.Calculate amount of deferred tax asset to be recognized.c60.Calculate current/noncurrent portions of deferred tax lia

12、bility.d61.Calculate amount deducted for depreciation on the tax return.b62.Calculate amount of deferred tax asset to be recognized.d63.Calculate deferred tax asset with temporary and permanent differences.a64.Calculate amount of DTA valuation account.a65.Calculate current portion of provision for i

13、ncome taxes.a66.Calculate deferred portion of income tax expense.c67.Computation of total income tax expense.a68.Calculate installment accounts receivable.b69.Computation of pretax financial income.a70.Calculate deferred tax liability amount.a71.Calculate income tax expense for the year.d72.Calculat

14、e income tax expense for the year.b73.Computation of income tax expense.c74.Computation of income tax expense.d75.Computation of warranty claims paid.b76.Calculate taxable income for the year.d77.Calculate deferred tax asset amount.b78.Calculate deferred tax liability balance.b79.Calculate income ta

15、xes payable amount.word.MULTIPLE CHOICEComputational (cont.)AnswerNo.Descriptiona80.Calculate deferred tax asset amount.b81.Calculate taxable income for the year.b82.Calculate pretax financial income.a83.Calculate deferred tax liability with changing tax rates.c84.Calculate deferred tax liability am

16、ount.d85.Calculate income tax expense with changing tax rates.b86.Determine change in deferred tax liability.b87.Calculate deferred tax liability with changing tax rates.d88.Calculate loss to be reported after NOL carryback.d89.Calculate loss to be reported after NOL carryback.b90.Calculate loss to

17、be reported after NOL carryforward.a91.Determine income tax refund following an NOL carryback.a92.Calculate income tax benefit from an NOL carryback.d93.Calculate income tax payable after NOL carryforward.c94.Calculate deferred tax asset after NOL carryforward.MULTIPLE CHOICECPA AdaptedAnswerNo.Desc

18、riptiona95.Determine current income tax liability.a96.Determine current income tax liability.c97.Deferred tax liability arising from depreciation methods.d98.Deferred tax liability when using equity method of investment accounting.d99.Calculate deferred tax liability and income taxes currently payab

19、le.b100.Determine current income tax expense.a101.Deferred income tax liability from temporary and permanent differences.a102.Deferred tax liability arising from installment method.c103.Differences arising from depreciation and warranty expenses.c104.Deferred tax asset arising from warranty expenses

20、.EXERCISESItemDescriptionE19-105Computation of taxable income.E19-106Future taxable and deductible amounts (essay).E19-107Deferred income taxes.E19-108Deferred income taxes.E19-109Recognition of deferred tax asset.E19-110Permanent and temporary differences.E19-111Permanent and temporary differences.

21、E19-112Temporary differences.E19-113Operating loss carryforward.Test Bank for Intermediate Accounting, Fourteenth Edition19 - 4PROBLEMSItemDescriptionP19-114Differences between accounting and taxable income and the effect on deferred taxes.P19-115Multiple temporary differences.P19-116Deferred tax as

22、set.P19-117Interperiod tax allocation with change in enacted tax rates.CHAPTER LEARNING OBJECTIVES1.Identify differences between pretax financial income and taxable income.2.Describe a temporary difference that results in future taxable amounts.3.Describe a temporary difference that results in futur

23、e deductible amounts.4.Explain the purpose of a deferred tax asset valuation allowance.5.Describe the presentation of income tax expense in the income statement.6.Describe various temporary and permanent differences.7.Explain the effect of various tax rates and tax rate changes on deferred income ta

24、xes.8.Apply accounting procedures for a loss carryback and a loss carryforward.9.Describe the presentation of deferred income taxes in financial statements.10.Indicate the basic principles of the asset-liability method.*11.Understand and apply the concepts and procedures of interperiod tax allocatio

25、n.word.SUMMARY OF LEARNING OBJECTIVES BY QUESTIONSItemTypeItemTypeItemTypeItemTypeItemTypeItemTypeItemTypeLearning Objective 11.TF21.MC23.MC96.MC114.P116.P2.TF22.MC95.MC105.E115.PLearning Objective 23.TFP25.MC54.MC97.MC107.E115.P4.TF52.MC55.MC98.MC108.E116.P24.MC53.MC58.MC106.E114.PLearning Objectiv

26、e 35.TF59.MC63.MC108.E114.P6.TF61.MC106.E109.E115.P56.MC62.MC107.E113.E116.PLearning Objective 47.TF8.TF64.MCLearning Objective 59.TF65.MC67.MC100.MCS26.MC66.MC99.MC113.ELearning Objective 610.TFS29.MC34.MC68.MC73.MC78.MC110.E11.TFS30.MC35.MC69.MC74.MC79.MC111.E12.TFS31.MC36.MC70.MC75.MC80.MC112.EP2

27、7.MC32.MC37.MC71.MC76.MC81.MC114.PS28.MC33.MC38.MC72.MC77.MC82.MC116.PLearning Objective 713.TFS39.MC83.MC85.MC87.MC14.TF40.MC84.MC86.MC117.PLearning Objective 815.TF17.TF42.MC89.MC91.MC93.MC113.E16.TF41.MC88.MC90.MC92.MC94.MCLearning Objective 918.TF44.MC47.MCS50.MC100.MC103.MC19.TF45.MC48.MC57.MC1

28、01.MC104.MC43.MC46.MC49.MC60.MC102.MC116.PLearning Objective 1020.TF51.MCNote:TF = True-FalseMC = Multiple ChoiceE = ExerciseP = ProblemTest Bank for Intermediate Accounting, Fourteenth Edition19 - 6TRUE-FALSEConceptual1.Taxable income is a tax accounting term and is also referred to as income befor

29、e taxes.2.Pretax financial income is the amount used to compute income tax payable.3.Taxable amounts increase taxable income in future years.4.A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the cur

30、rent year.5.Deductible amounts cause taxable income to be greater than pretax financial income in the future as a result of existing temporary differences. 6.A deferred tax asset represents the increase in taxes refundable in future years as a result of deductible temporary differences existing at t

31、he end of the current year.7.A company reduces a deferred tax asset by a valuation allowance if it is probable that it will not realize some portion of the deferred tax asset.8.Companies should consider both positive and negative evidence to determine whether it needs to record a valuation allowance

32、 to reduce a deferred tax asset.9.A company should add a decrease in a deferred tax liability to income tax payable in computing income tax expense.10.Taxable temporary differences will result in taxable amounts in future years when the related assets are recovered.11.Examples of taxable temporary d

33、ifferences are subscriptions received in advance and advance rental receipts.12.Permanent differences do not give rise to future taxable or deductible amounts.13.Companies must consider presently enacted changes in the tax rate that become effective in future years when determining the tax rate to a

34、pply to existing temporary differences.14.When a change in the tax rate is enacted, the effect is reported as an adjustment to income tax payable in the period of the change.15.Under the loss carryback approach, companies must apply a current year loss to the most recent year first and then to an ea

35、rlier year.16.The tax effect of a loss carryforward represents future tax savings and results in the recognition of a deferred tax asset.17.A possible source of taxable income that may be available to realize a tax benefit for loss carryforwards is future reversals of existing taxable temporary diff

36、erences.18.An individual deferred tax asset or liability is classified as current or noncurrent based on the classification of the related asset/liability for financial reporting purposes. word.19.Companies should classify the balances in the deferred tax accounts on the balance sheet as noncurrent

37、assets and noncurrent liabilities. 20.The FASB believes that the deferred tax method is the most consistent method for accounting for income taxes. True-False AnswersConceptualItemAns.ItemAns.ItemAns.ItemAns.1.F6.T11.F16.T2.F7.F12.T17.T3.T8.T13.T18.T4.T9.F14.F19.F5.F10.T15.F20.FMULTIPLE CHOICEConcep

38、tual21.Taxable income of a corporationa.differs from accounting income due to differences in intraperiod allocation between the two methods of income determination.b.differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of incom

39、e determination.c.is based on generally accepted accounting principles.d.is reported on the corporations income statement.22Taxable income of a corporation differs from pretax financial income because ofPermanentTemporaryDifferencesDifferencesa.NoNob.NoYesc.YesYesd.YesNo23.The deferred tax expense i

40、s thea.increase in balance of deferred tax asset minus the increase in balance of deferred tax liability.b.increase in balance of deferred tax liability minus the increase in balance of deferred tax asset.c.increase in balance of deferred tax asset plus the increase in balance of deferred tax liabil

41、ity.d.decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability.Test Bank for Intermediate Accounting, Fourteenth Edition19 - 824.Machinery was acquired at the beginning of the year. Depreciation recorded during the life of the machinery could result inFutureF

42、utureTaxable AmountsDeductible Amountsa.Yes Yesb.YesNoc.NoYesd.NoNoP25.A temporary difference arises when a revenue item is reported for tax purposes in a periodAfter it is reportedBefore it is reportedin financial incomein financial incomea.YesYesb.YesNoc.NoYesd.NoNoS26.At the December 31, 2012 bal

43、ance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2022, a future taxable amount will occur anda.pretax financial income will exceed taxable income in 2022.b.Unruh will record a decrease in a def

44、erred tax liability in 2022.c.total income tax expense for 2022 will exceed current tax expense for 2022.d.Unruh will record an increase in a deferred tax asset in 2022.P27.Assuming a 40% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting

45、a deferred tax liability on the balance sheetI.A revenue is deferred for financial reporting purposes but not for tax purposes.II.A revenue is deferred for tax purposes but not for financial reporting purposes.III.An expense is deferred for financial reporting purposes but not for tax purposes.IV.An

46、 expense is deferred for tax purposes but not for financial reporting purposes.a.item II onlyb.items I and II onlyc.items II and III onlyd.items I and IV onlyS28.A major distinction between temporary and permanent differences isa.permanent differences are not representative of acceptable accounting

47、practice.b.temporary differences occur frequently, whereas permanent differences occur only once.c.once an item is determined to be a temporary difference, it maintains that status; however, a permanent difference can change in status with the passage of time.d.temporary differences reverse themselv

48、es in subsequent accounting periods, whereas permanent differences do not reverse.word.S29.Which of the following are temporary differences that are normally classified as expenses or losses that are deductible after they are recognized in financial incomea.Advance rental receipts.b.Product warranty

49、 liabilities.c.Depreciable property.d.Fines and expenses resulting from a violation of law.S30.Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial incomea.Subscriptions received in advance.b.Prepaid royalty received in

50、advance.c.An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes.d.Interest received on a municipal obligation.S31.Which of the following differences would result in future taxable amountsa.Expenses or losses that

51、are tax deductible after they are recognized in financial income.b.Revenues or gains that are taxable before they are recognized in financial income.c.Revenues or gains that are recognized in financial income but are never included in taxable income.d.Expenses or losses that are tax deductible befor

52、e they are recognized in financial income.32.Stuart Corporations taxable income differed from its accounting income computed for this past year. An item that would create a permanent difference in accounting and taxable incomes for Stuart would bea.a balance in the Unearned Rent account at year end.

53、b.using accelerated depreciation for tax purposes and straight-line depreciation for book purposes.c.a fine resulting from violations of OSHA regulations.d.making installment sales during the year.33.An example of a permanent difference ceeds from life insurance on erest expense

54、 on money borrowed to invest in municipal bonds.c.insurance expense for a life insurance policy on officers.d.all of these.34.Which of the following will not result in a temporary differencea.Product warranty liabilitiesb.Advance rental receiptsc.Installment salesd.All of these will result in a temp

55、orary difference.35.A company uses the equity method to account for an investment. This would result in what type of difference and in what type of deferred income taxType of DifferenceDeferred Taxa.PermanentAssetb.PermanentLiabilityc.TemporaryAssetd.TemporaryLiabilityTest Bank for Intermediate Acco

56、unting, Fourteenth Edition19 - 1036.A company records an unrealized loss on short-term securities. This would result in what type of difference and in what type of deferred income taxType of DifferenceDeferred Taxa.TemporaryLiabilityb.TemporaryAssetc.PermanentLiabilityd.PermanentAsset37.Which of the

57、 following temporary differences results in a deferred tax asset in the year the temporary difference originatesI.Accrual for product warranty liability.II.Subscriptions received in advance.III. Prepaid insurance expense.a.I and II only.b.II only.c.III only.d.I and III only.38.Which of the following

58、 is not considered a permanent differencea.Interest received on municipal bonds.b.Fines resulting from violating the law.c.Premiums paid for life insurance on a companys CEO when the company is the beneficiary.d.Stock-based compensation expense.S39.When a change in the tax rate is enacted into law,

59、its effect on existing deferred income tax accounts should bea.handled retroactively in accordance with the guidance related to changes in accounting principles.b.considered, but it should only be recorded in the accounts if it reduces a deferred tax liability or increases a deferred tax asset.c.rep

60、orted as an adjustment to tax expense in the period of change.d.applied to all temporary or permanent differences that arise prior to the date of the enactment of the tax rate change, but not subsequent to the date of the change.40.Tax rates other than the current tax rate may be used to calculate t