Flashcards in Deck25 Deck (18):
(Income Tax/Accrual Tax) If there are no temporary differences, then Income Tax Expense =
Income Tax Liability
The current portion of Income Tax Expense =
The Income Tax Liability for the year.
What is the Effective Tax Rate Formula?
Tax Liability/Pre-Tax Accounting Income
(DTL/DTA) What determines if it is Current or Noncurrent?
The underlying Cause of the future temporary difference.
Why is Accounts Receivable a Current DTL instead of a Noncurrent DTL?
Because Accounts Receivable is a Current Asset
If a Depreciable Asset is Noncurrent, the the Deferred Tax Account is:
Noncurrent (Noncurrent DTL)
Are Permanent Differences disclosed in a footnote?
The tax benefit of a carry-forward should be included where on the financial statements?
Income from Continuing Operations
What are the 3 types of Accounting Changes?
Estimate Changes, Accounting Principle Changes, Error Corrections
What are the 2 Accounting Approaches?
Prospective (Today on) and Retrospective(Accting Princ Changes and Correction of Errors)
For a Restrospective Application, where is the effect of the Prior Years Adjustment Recorded?
Is change in Depreciation method a Prior Period Adjustment?
No. It is an Estimate Change and is reported on retained earnings.
When an Accounting Principle can not be distinguished from an Estimate Change, how it it reported?
As an Estimate Change. (In Income from Continuing Operations)
Correction of an error should be recorded as a:
Prior Period Adjustment
Is Earning Per Share information required for publicly traded companies?
Are estimates of future contributions required to be disclosed for a Defined Benefit Plan under GAAP?
Which of these is not subject to intra period Tax Allocations? Discontinued Operations, Income from Cont Operations, Extraordinary Gains/Losses, Operating Income