Scribd
Upload
51 views2 pages

Problem 15-3 Multiple Choice

This document contains a multiple choice problem with 5 questions regarding deferred tax assets and liabilities. The key points covered are: - Deferred tax liabilities relate to taxable temporary differences while deferred tax assets relate to deductible temporary differences and tax losses. - Deferred tax assets arise from deductible temporary differences and tax losses carried forward. - All deferred tax items must be disclosed separately except for the tax bases of major balance sheet items. - Both interest accrued but not deducted for tax and greater accumulated depreciation for accounting than tax give rise to deductible temporary differences. - A deferred tax asset arises when the tax base of a machine is greater than its carrying amount.

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
51 views2 pages

Problem 15-3 Multiple Choice

This document contains a multiple choice problem with 5 questions regarding deferred tax assets and liabilities. The key points covered are: - Deferred tax liabilities relate to taxable temporary differences while deferred tax assets relate to deductible temporary differences and tax losses. - Deferred tax assets arise from deductible temporary differences and tax losses carried forward. - All deferred tax items must be disclosed separately except for the tax bases of major balance sheet items. - Both interest accrued but not deducted for tax and greater accumulated depreciation for accounting than tax give rise to deductible temporary differences. - A deferred tax asset arises when the tax base of a machine is greater than its carrying amount.

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
You are on page 1/ 2

Problem 15-3 Multiple Choice

1. Which of the following statements in relation to deferred tax assets or liabilities is


true?

I. Deferred tax liabilities are the amounts of income taxes payable in future periods
in respect of taxable temporary.

II. Deferred tax assets are the amounts of income taxes recoverable in future
periods in respect of deductible permanent differences.

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

2. Deferred tax assets are the amount of income taxes in future periods in respect of

a. Carry forward of unused tax losses only


b. Taxable temporary differences and carry forward of unused tax losses
c. Deductible temporary diffences and carry forward of unused tax losses
d. Permanent differences

3. All of the following must be disclosed separately, except?

a. The tax bases of major items on which deferred tax has been included.
b. The amount of deductible temporary differences for which no deferred tax asset
is recognized.
c. The amount of taxable temporary differences associated with investments in
subsidiaries and associates for which no deferred
d. The amount of income tax relating to each component of other comprehensive
income.

4. Which of the following statements in relation to deductible temporary differences is


true?

I. Interest expense accrued but included in taxable profit on cash basis shall be
included under deductible temporary difference.

II. Where accumulated depreciation on an asset is greater than accumulated tax


depreciation, the amount shall be classified under deductible temporary
differences.
a. I only
b. II only
c. Both I and II
d. Neither I nor II

5. Which of the following statement is true in relation to deferred tax?

I. Development costs have been capitalized and amortized but were deducted in
determining taxable profit in period in which they were incurred.

II. The tax base for a machine for tax purposes is greater than the carrying amount
in the financial statements up to the end of reporting period. This will give rise to
a deferred tax asset.

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

Answers Problem 15-3 Multiple choice

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

You might also like