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Problem 15-2 Multiple Choice

This document contains a multiple choice problem regarding accounting for deferred tax assets and liabilities. It asks 5 questions about key aspects of accounting for deferred taxes, such as: - The definition of tax base - When deferred tax liabilities are recognized for temporary differences - When deferred tax assets are recognized for deductible temporary differences and operating losses - When offsetting of deferred tax assets and liabilities is appropriate - Statements that are incorrect about presenting and distinguishing current and non-current tax assets and liabilities

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Mobi Dela Cruz
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52 views2 pages

Problem 15-2 Multiple Choice

This document contains a multiple choice problem regarding accounting for deferred tax assets and liabilities. It asks 5 questions about key aspects of accounting for deferred taxes, such as: - The definition of tax base - When deferred tax liabilities are recognized for temporary differences - When deferred tax assets are recognized for deductible temporary differences and operating losses - When offsetting of deferred tax assets and liabilities is appropriate - Statements that are incorrect about presenting and distinguishing current and non-current tax assets and liabilities

Uploaded by

Mobi Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Problem 15-2 Multiple Choice

1. It is the amount attributable to an asset or liability for tax purposes.


a. Carrying Amount
b. Tax Base
c. Measurement Base
d. Taxable Amount

2. A deferred tax liability shall be recognized for all

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

3. A deferred tax asset shall be recognized for all deductible temporary differences and
operating loss carry forward.

a. It is probable that taxable income will be available against within the deferred tax
asset can be used.
b. It is probable that accounting income will be available against which the deferred
tax asset can be used.
c. It is possible that taxable income will be available against which the deferred tax
asset can be used.
d. It is possible that accounting income will be available against which the deferred
tax asset can be used.

4. An entity shall offset a deferred tax asset and deferred tax liability when

I. The deferred tax asset and deferred tax liability relate to income taxes levied by
the same taxing authority.

II. The entity has a legal enforceable right to offset a current tax asset against a
current tax liability.

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

5. Which of the following statements is incorrect concerning tax assets and


liabilities?

a. Deferred tax assets and liabilities shall be discounted.


b. Tax assets and liabilities shall be presented separately from other assets and
liabilities in the statement of financial position.
c. Deferred tax assets and liabilities shall be distinguished from current tax assets
and liabilities.
d. When an entity makes a distinction between current and noncurrent assets and
liabilities, it shall not classify deferred tax assets and liabilities, it shall not
classify deferred tax assets and liabilities as current.

Answers 15-2

1. B
2. C
3. A
4. C
5. A

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