CH 14. - Accounting for Income Taxes (Deferred Taxes)

Question 1

Best Estimate of an entity’s Annual Effective Tax Rate

Answer 1

Total Income Tax Expense / Pretax Book Income

Question 2

_______________ is required to disclose information about the nature and amount of temporary differences and the nature and amount of each operating loss and tax credit carryforward, including when they expire.

Answer 2

An entity

Question 3

_______________________between accounting and taxable income may result in a deferred tax asset (DTA) or a deferred tax liability (DTL).

Answer 3

Temporary differences

Question 4

A tax benefit resulting from an uncertain tax position can only be recorded if there is a _________________ that the tax position will be allowed by the tax authorities.

Answer 4

more-likely-than-not (greater than 50%) chance