Differences between the carrying amounts of an entity's net assets determined under accounting standards and accrual accounting and the tax bases of those net assets determined under the Income Tax Assessment Act 1997, are known as: Reading required:            Learning objective 13.5: calculate and account for deferred income tax.Group of answer choicestemporary differences.tax losses.permanent differences.the current income tax liability.

In general, the differences between the accounting treatment and the income tax treatment of a particular item is that the accounting treatment is based on:  Reading required:            Learning objective 13.1: discuss the need for an accounting standard on income taxes.Group of answer choicescash flows.accrual accounting and is subject to the requirements of accounting standards.the income tax legislation.cash flows adjusted for depreciation charges.

When accounting for income taxes a temporary difference occurs in which of the followinga.An item is no longer taxable due to change in tax lawsb.An item is included in the calculation of net income, but is neither taxable nor deductiblec.An item is included in taxable income in one year and in taxable income in a different yeard.Accrual method of accounting is used

A taxable temporary difference leads to the payment of: Reading required:            Learning objective 13.5: calculate and account for deferred income tax.Group of answer choicesmore tax in the future and gives rise to a deferred tax asset.more tax in the future and gives rise to a deferred tax liability.less tax in the future and gives rise to a deferred tax liability.less tax in the future and gives rise to a deferred tax asset.

Taxable temporary differences arise whenI Carrying amount of an asset > Tax base of an assetII Carrying amount of an asset < Tax base of an assetIII Carrying amount of a liability > Tax base of a liabilityIV Carrying amount of a liability < Tax base of a liability Reading required:            Learning objective 13.5.3 on pages 423-424Group of answer choicesII, IIII, IVII, IVI, III

Which of the followings is not the defined tax base of the asset? Reading required:            Learning objective 13.5.2 on pages 420-421Group of answer choicesCarrying amountRecoverable amountFuture deductible amountGross amount PreviousNext