INCOME TAXES Flashcards
Income Taxes follows what PAS?
12
What is the format to compute taxable income? Explain the reason
PURE NO NEEDS FILM FOR FUTURE TALK
Pre tax financial Income
PD:
(NTR)
NDE
=FISIT
(FTA)
FDA
=TAXABLE INCOME
How to get Deferred Tax Liab?
FTA x %—> Future Tax Rate (enacted)
How to get DTA?
FDA x %—> Future Tax Rate (enacted)
How to get CITE?
Taxable Income x Tax Rate Current Period
Explain the difference between Permanent Differences and Temporary Differences
PD- Items of income, revenue, na never magiging included sa each other.
-Non taxable Revenue- deducted ito dahil nung nagcompute si Sir Acctng ay included sa PTFI ang amount
-Non deductible Expense- iaaddback natin to dahil dineduct ito ni Sir acctng, eh sabi ni Master Tax hindi siya idededuct
TD- items ng AI and TI na included or deducted in the future.
-FTA- amount na sa future pa or later taxable, kaya idededuct natin sa AI
-FDA- amount na sa future pa deductible kaya iaadback natin
How to get TITE?
CITE + Deferred Income Tax Expense
How to get TITE if tax rate is uniform?
FISIT x %
Explain FTALE vs FDAAB
FTALE- pabor kay Sir Acctng, naiinggit si Master Tax kaya FuTA iLEss mo yan!
FDAAB- pabor kay Tax, hindi na sya maiinggit kaya ForDAABenefits, paadd pls!
What is the treatment of Depreciation? FTALE or FDAAB? explain
Depreciation can be FTALE or FDAAB,
FTALE- since SLM ang gamit ni ACCTNG at DD, SYD or Accelerated Method ang gamit ni Tax
FDAAB- kapag merong excess depre si acctng over sa depre expense ni tax
Explain Treatment: FTALE or FDAAB?
Bad Debts
FDAAB since sa ACCTNG, allowance method, sa Tax ay Direct Method
Explain Treatment: FTALE or FDAAB?
PREPAID EXPENSES
Accrual ang method ni Acctng tapos cash basis kay tax
kaya FTALE, asset din ito
Explain Treatment: FTALE or FDAAB?
UNEARNED INCOME
FDAAB kasi liability to
Explain Treatment: FTALE or FDAAB?
ACCRUED INC
FTALE kasi nagrecord na kahit wala pang nacollect, asset din ito
Explain Treatment: FTALE or FDAAB?
ACCRUED EXPENSE
Liab to kaya FDAAB
