Unit 1: Income Tax

Question 1

________ may be defined as the excess of taxable revenue over tax deductible expense and exemptions for the period, as defined by the BIR.

Answer 1

Taxable income.

Question 2

Also known as financial income, _______ is the net income for the period before deducting income tax expense.

Answer 2

Accounting income.

Question 3

A ______ is an entity whose equity and debt securities are:

(a) traded in a stock exchange or over-the-counter market
(b) registed with the SEC in preparation for sale of the securities.

Answer 3

public entity

Question 4

[T/F] Deferred tax accounting is applicable to all entities, whether public or nonpublic.

Answer 4

True.

Question 5

A _______ is recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised.

Answer 5

deferred tax asset