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28 Cards in this Set
- Front
- Back
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Temporary Differences: Reported on the I/S first, and on the tax return later Revenues and Gains |
Deferred Tax Liability |
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Temporary Differences: Reported on the I/S first, and on the tax return later Expenses and Losses |
Deferred Tax Asset |
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Temporary Differences: Reported on the tax return first, and on the I/S later Revenues and Gains |
Deferred Tax Asset |
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Temporary Differences: Reported on the tax return first, and on the I/S later Expenses and Losses |
Deferred Tax Liability |
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Permanent Differences: Interest on Investments in state and municipal bonds Not Taxable or Not Tax Deductible? |
Not Taxable |
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Permanent Differences: Proceeds from Life Insurance carried on employees Not Taxable or Not Tax Deductible? |
Not Taxable |
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Permanent Differences:
Portion of dividends not taxed due to dividends received deduction Not Taxable or Not Tax Deductible? |
Not Taxable |
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Permanent Differences:
Investment expenses incurred to obtain tax-exempt income Not Taxable or Not Tax Deductible? |
Not Tax Deductible |
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Permanent Differences: Premiums paid for life insurance on employees Not Taxable or Not Tax Deductible? |
Not Tax Deductible |
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Permanent Differences: Fines from legal violations Not Taxable or Not Tax Deductible? |
Not Tax Deductible |
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Temporary Differences: Installment sales of Property DTL or DTA |
DTL |
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Temporary Differences: Unrealized gains from recording investments at Fair Value DTL or DTA |
DTL |
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Temporary Differences: Revenue collected in advance (Rent Revenue, Subscription Revenue) DTL or DTA |
DTA |
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Temporary Differences:
Estimated expenses and losses (Warranties, Loss Contingencies) DTL or DTA |
DTA |
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Temporary Differences: Unrealized losses from recording investments at Fair Value DTL or DTA |
DTA |
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Temporary Differences: Inventory write-down to LCM DTL or DTA |
DTA |
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Temporary Differences: Depreciation on tax return in excess of depreciation on the I/S DTL or DTA |
DTL |
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Temporary Differences: Prepaid Expenses (Rent Expense, Insurance Expense) DTL or DTA |
DTL |
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Net operating loss |
is negative taxable income: tax-deductible expenses exceed taxable revenues. There is no tax payable for the year of an operating loss. |
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An operating loss can be carried back, _ years and carried forward __ years. |
Carried back 2 years Carried forward 20 years These have to be elected by the company |
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Journal entry for a Loss carry forward |
Deferred Tax Asset (debit) Income tax benefit - operating loss (credit) |
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Journal entry for a Loss carry backward |
Receivable - income tax refund (debit) Deferred tax asset (debit) Income tax benefit - operating loss (credit) |
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Temporary Differences: |
The difference between the tax basis and the book basis of an asset or liability that leads to a future taxable or deductable amount |
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A temporary difference can be either:
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Deductible or Taxable.
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A deductible temporary difference is: |
A deductible temporary difference is a temporary difference that will yield amounts that can be deducted in the future when determining taxable profit or loss.
DTA |
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A taxable temporary difference is: |
A taxable temporary difference is a temporary difference that will yield taxable amounts in the future when determining taxable profit or loss.
DTL |
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Valuation Allowance |
A reduction of a Deferred Tax Asset if it is "more likely than not" that some portion or all of the DTA will not be realized |
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Permanent Differences are: |
disregarded when determining the tax payable and expense. |
