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Problem 15-1 Multiple Choice

This document contains a 10 question multiple choice quiz on deferred tax accounting concepts. It tests understanding of key terms like temporary differences, deferred tax assets and liabilities, accounting profit vs taxable profit, and how deferred tax expense is calculated. The correct answers are provided.

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Mobi Dela Cruz
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105 views3 pages

Problem 15-1 Multiple Choice

This document contains a 10 question multiple choice quiz on deferred tax accounting concepts. It tests understanding of key terms like temporary differences, deferred tax assets and liabilities, accounting profit vs taxable profit, and how deferred tax expense is calculated. The correct answers are provided.

Uploaded by

Mobi Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 15-1 Multiple choice

1. Which entities are required to apply deferred tax accounting?

I. Public entities
II. Nonpublic entities

a. I only
b. II only
c. Both I and II
d. Neither I nor II

2. These are differences that will result in future taxable amount in determining taxable
profit of future periods when carrying amount of the asset or liability is recovered or
settled.

a. Temporary Difference
b. Taxable Temporary Difference
c. Deductible Temporary Difference
d. Permanent Temporary Difference

3. These are differences that result in future deductible amount in determining taxable
profit in future periods when the carrying amount of the asset or liability recovered
or settled.

a. Taxable Temporary Differences


b. Deductible Temporary Differences
c. Taxable Temporary and Permanent Differences
d. Deductible Temporary and Permanent Differences

4. It is the deferred tax consequence attributable to a taxable temporary difference.

a. Deferred Tax Liability


b. Deferred Tax Asset
c. Current Tax Liability
d. Current Tax Asset

5. It is the deferred tax consequence attributable to a deductible temporary difference


and operating loss carry forward.

a. Deferred Tax Liability


b. Deferred Tax Liability
c. Current Tax Liability
d. Current Tax Asset

6. It is the profit for a period before deducting tax expense.

a. Accounting Profit
b. Taxable Profit
c. Gross Profit
d. Net Profit

7. It is the aggregate amount included in the determination of net profit for the period in
respect of current tax and deferred tax.

a. Tax Expense
b. Current Tax Expense
c. Deferred Tax Expense
d. Deferred Tax Benefit

8. It is the profit for a period determined in accordance with the rules established by
taxation authorities upon which income taxes are payable.

a. Accounting Profit
b. Taxable Profit
c. Net Profit
d. Accounting profit subject to tax

9. It is the amount of income tax payable in respect of taxable profit.

a. Current Tax Expense


b. Total income tax expense
c. Deferred Tax Expense
d. Deferred Tax Benefit

10. The deferred tax expense is equal to

a. Increase in deferred tax asset less increase in deferred tax liability.


b. Increase in deferred tax liability less increase in deferred tax asset.
c. Increase in deferred tax asset.
d. Increase in deferred tax liability.

Answers: Chapter 15-1


1. C 6. A
2. C 7. A
3. C 8. B
4. A 9. A
5. B 10. B

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