Taxation

Question 1

Will income taxes be listed on the finan states of a sole propietorship or partnership

Answer 1

no, on owners personal

Question 2

What are deferred income taxes

Answer 2

adjustments between the accounting income and taxable income

Question 3

Are the differences between accounting income and taxable income always fixed

Answer 3

no

Question 4

What are permanent differences bwt acct and taxable income and give examples

Answer 4

listed on comps accounts but not on comps tax return like
non tax deductible expenses (fines, expenses related to non taxable revenue)
divis from taxable corps

OR

items are recorded on the comps tax return but not on accounts like
Depletion allowance of natural resources in excess of cost

Question 5

Do permanent diffs of acct income vs taxable income have tax effects and are they recorded on finan states

Answer 5

no and no

Question 6

Are temporary diffs of acct and taxable income listed on balance sheet

Answer 6

yes