FARE. Accounting For Income Taxes Flashcards
How is current tax expense collected? (Calculated?) I think.
Current taxable income X current tax rate
What is total provision for income taxes?
Current tax expense plus deferred tax expense
or less deferred tax credit
How is deferred tax credit/expense calculated?
Compute the net change in all deferred tax assets and deferred tax liabilities
How are deferred tax asset/liability calculated?
Cumulative temporary difference X tax rate to be in effect when difference reverses
What kind of “difference” is tax exempt interest?
Permanent difference
What is the result of a net operating loss carry forward?
Deferred tax asset
How is a deferred tax liability that is related to differing depreciation methods classified (Book and tax)?
Noncurrent liability
True or false?
A current deferred tax asset and noncurrent deferred liability should be netted on the balance sheet
False
What is the Contra account to a deferred tax asset?
Valuation allowance
If a deferred tax asset or liability is not related to any asset or liability, how should it be classified?
Based on expected reversal dates
