Accounts

Question 1

Current Income tax payable

Answer 1

The amount of the cheque we will be writing to the Receiver General (in the case of a refund, it would be
Current Income Tax Receivable)

Question 2

Current Income Tax Expense:

Answer 2

Shown on our income statement.
This amount is taxes we incurred as a result of this year’s transactions

Question 3

Deferred (Future) Income Tax Liability:

Answer 3

Shown on our balance
sheet. This is an obligation for taxes we will have to pay at some point in
the future that arises from this year’s transactions

Question 4

Deferred (Future) Income Tax Expense:

Answer 4

Shown on our income
statement. This amount is taxes we incurred as a result of this year’s
transactions that won’t be paid this yea

Question 5

Deferred (Future) Income Tax Asset

Answer 5

Shown on our balance sheet.
This is an amount that we will be able to use, at some point in the future, to
reduce the total amount of our taxes payable. (Not a receivable; we can
only use it to reduce a liability)