Chp 18 Income Tax Flashcards
NOL ______: Deductions or credits that cannot be used in current year but may be carried forward to reduce taxable income in future year(s).
Carryforwards
A company schedule that shows differences between U.S. statutory tax rate and effective tax rate.
Rate Reconciliation
NOL _______: Deductions or credits that cannot be used in current year but may be carried back to reduce taxable income in prior year(s).
Carryback
Type of differences between taxable income and pretax GAAP income recognizing revenues/expenses in various reporting periods.
Temporary
Income Tax _______: total tax (current and future) incurred from current year events.
Expense
Future Tax Benefits
Deferred Tax Asset (DTA)
Type of differences between taxable income and pretax GAAP income that will never reverse.
Permanent
_____ tax rate is income tax expense as a percentage of pretax GAAP income.
Effective
A contra-asset account that reduces some or all of DTA that will not be realized.
Valuation Allowance
Future Tax Obligations
Deferred Tax Liability
_______ tax rate is the legally imposed tax rate of a jurisdiction.
Statutory
Abbreviation for negative taxable income that leads to a creation of DTA.
NOL (Net Operating Loss)
Tax position requiring “more likely than not” probability of being sustained in order to record potential tax benefit.
Uncertain
