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

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.

Which one of the followings is the defined tax base of the liability?I Carrying amount - future deductible amountII Carrying amount - future taxable amountIII Carrying amount – revenue received in advance not taxable in futureIV Carrying amount – revenue received in advance taxable in future Reading required:            Learning objective 13.5.2 on pages 422-423Group of answer choicesI, IVII, IVII, III

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

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.

A favorable temporary book–tax difference is so named because it causes taxable income to decrease relative to book income in the current year.