Flashcards
Accounting for Income Taxes
Cards in this deck (6)
- 1Temporary DifferencesThe difference between the tax basis of an asset or liability and its reported (carrying value) amount in the financial statements.
Results in deductible amounts or taxable amounts in future years - 2Taxable amountsIncrease taxable income in future years
- difference between book basis and tax basis for prepaid insurance
- excess tax depreciation over book depreciation
- installment sales contract accounted for on cash basis for tax purposes and on accrual basis for book purposes - 3deductible amountsdecrease taxable income for future years
- Product warranty liabilities
- subscriptions received in advance
- unearned rent revenue - 4Current tax expensea component of income tax expense. Represents the amount of income taxes payable for the period.
- 5Deferred tax expensea component of income tax expense.
It is how much the DTL balance increased from the beginning to the end of a period. - 6Deferred tax assetrepresents the increase in taxes refundable (or saved) in future years as a result of deductible temporary differences existing at the end of the current year.
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- Flashcards on Accounting for Income Taxes, created by Laura Winchester on 12/04/2015.
- Created by
- Laura Winchester · Apr 2015
- Updated
- Jun 30, 2016
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