Which of the following may not form part of the regular itemized deductions from the gross income? *   Allowance for depreciation under cash basis Repairs and maintenance Losses NOLCO None of the above

Q: 1. A temporary difference that will result in future deductible amounts and, therefore, will usually…

A: Deferred tax liability is the item reported on the balance sheet which is a result of, the amount of…

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: The excess of allowable deductions over gross income of the business in a taxable year is known as:…

A: SOLUTION EXPLANATION- FOR INCOME TAX PURPOSE ,A NET OPERATING LOSS (NOL) IS THE RESULT WHEN A…

Q: Reversing entries maybe used in unearned income when the original 1 point collection is recorded as…

A: Answer In a business unearned income record as a assets instead of a liability.

Q: In accordance with PAS 1, which of the following expenses need not be presented separately in the…

A: Solution: In addition to items required by other PAS, the profit or loss section or the statement of…

Q: Which of the following events could not coincide with the recognition of an expense? O The…

A: Expenses means the amount spent on running the business. Expense will decrease our profits and shown…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: benefits of a loss carryforward, assume that it is probable that the related benefits will be…

A: Hi student,  Since there are multiple subparts, we will answer only first three subparts.  Deferred…

Q: The crucial reason for determining whether an item is deductible as an ex­pense under § 162 or under…

A: The internal Revenue Code § 212 (26 U.S.C. § 212) gives a deduction, for U.S. government annual duty…

Q: Using the straight-line method of depreciation for reporting purposes and accelerateddepreciation…

A: To offset the amount of a deferred tax asset , valuation allowance is used.  A deferred tax asset is…

Q: The accounting treatment of depreciation is not recorded in.. Receipt-Payment A/C All of the above…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: In a case of low value asset exemption, rent paid in advance by the lessee should be treated as O…

A: Rent paid in Advance by the lessee shall be classified as Prepaid Rent.. Option Prepaid Rent is…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: The profit or loss section or the statement of profit or loss shall include the following line…

A: Lets understand the basics. This question deals with the PAS 1. In this standard it is specified…

Q: Discuss the appropriate treatment in the income statement for the following items: a.    Loss on…

A: Income statement:   In this statement, the financial records of the company's monetary performance…

Q: Which of the following is not an expense excluded when calculating EBITDA? Depreciation expense,…

A: EBITDA is the earning available to compare the profitability of various companies, this eliminates…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: Which item would not be classified as an operating expense?     a)  Interest expense.   b)…

A: Operating Expenses Operating expenses are those expenditures that a business incurs to engage in…

Q: Which of the following situations will result in a future deductible amount?  Carrying amount of…

A: Future taxable amount is the amount which increase tax liability in future and for that create…

Q: Which of the following expenses apply to or may be claimed by cash basis taxpayers?  a. Depreciation…

A: Under a cash basis, the cash received and cash paid is considered for calculating the income and…

Q: hen assets that have been sold and accounted for by the installment method are subsequently…

A: Inventory is the current asset posted on the balance sheet of the company.

Q: To arrive at the accumulated taxable income, which of the following items does not represent a…

A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…

Q: In accordance with PAS 1, which of the following gains or losses from reclassification of financial…

A: PAS 1 talks about Presentation of Financial Statements which presents the overall requirements for…

Q: How much is the additional loss, related to the return of the asset to its original classification…

A: Held for Sales How to account for non-current assets held for sale is described in IFRS 5…

Q: All of the following are non-cash charges EXCEPT O accruals. depreciation. O depletion.…

A: Depreciation is a non cash item which is charged for the wear and tear of the asset. Depletion is a…

Q: Amortization expense should be: included in income from continuing operations. included in other…

A: Amortization expense can be referred to as a reduction in the value of an intangible asset over the…

Q: According to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations which ofthe…

A: Answer The sum of the post-tax profit or loss of the discontinued operation and the post-tax gain or…

Q: The purpose of providing for depreciation in the statement of comprehensive income is to: O a.…

A: Depreciation refers to a decrease in value of asset over its useful life due to factors such as…

Q: A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods…

A: Taxable income is the value at which the tax is calculated by the company.It is calculated by…

Q: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

A: In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall…

Q: Which of the following will be affected by an increase in the provision for doubtful debts? Gross…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: What is the real return?   Multiple Choice   The after-tax return on assets.   The pre-tax return…

A: Rate of return is the percentage of profit that is earned on an investment.

Q: With respect to transaction and translation gains and losses:   a. transaction gains and losses are…

A: Transaction and translation gains and losses are incurred by an organization operating in…

Q: Examples of items that are adjusted directly against equit rather than being included as part opf…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Which travel expenses are deductible and which ones are not? Provide reasons for both deductible and…

A: The travel expenses are costs usually related to the purpose of traveling for business-related…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: Describe the two categories of accounting depreciation?

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…

Q: Question 3. Classify each of the following accounts as (a) asset, (b) liability, or (c) equity.…

A: Assets means resources that the business have. It may be tangible resources or intangible resources.…

Q: Theoretically, unearned items (deferred revenues) should not be classified as a. deferred credits…

A: Deferred credits: It refers to the money received by a company but not immediately reported as…

Q: Which of the following is true? Non-deductible expense is deducted to financial income in computing…

A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…

Q: Bill's deductible loss from the activity in Year 1 and Year 2?

A: Partners investing in partnership business have a limitation on the losses from the partnership that…

Q: When accounting standards require an asset to be expensed immediately but tax rulesrequire the item…

A: A deferred tax asset or DTA is recorded on the balance sheet of the company which results from…

Q: Describe the method of Accounting for Depreciation and Income Taxes?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: How, and why, does the depreciation reported for tax purposes differ from that reported in the…

A: Depreciation is the amount to be written off periodically to charge the decline in value of a fixed…

Q: The profit or loss section or the statement of profit or loss shall include the following line…

A: Solution 8:  The profit or loss section or the statement of profit or loss shall include the…

Q: Explain how depreciation expense satisfies the definition of an expense

A: Depreciation is the amount with which an asset’s value decreases every year. Example:- Machinery…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.