Flashcards
Chapter 17 Key Terms
Flashcards do conjunto (18)
- 1Book equivalent of taxable incomeA company’s pretax income from continuing operations adjusted for permanent differences.
- 2Cash tax rateThe tax rate computed by dividing a company’s taxes paid during the year by its pretax income from continuing operations.
- 3Current income tax expense (benefit)The amount of taxes paid or payable (refundable) in the current year.
- 4Current tax liability (asset)The amount of taxes payable (refundable) in the current year.
- 5Deductible temporary differencesBook–tax differences that will result in tax deductible amounts in future years when the related deferred tax asset is recovered.
- 6Deferred tax assetThe expected future tax benefit attributable to deductible temporary differences and carryforwards.
- 7Deferred tax liabilityThe expected future tax cost attributable to taxable temporary differences.
- 8Effective tax rateThe taxpayer’s average rate of taxation on each dollar of total income (taxable and nontaxable income).
- 9Enacted tax rateThe statutory tax rate that will apply in the current or a future period.
- 10Income tax provisionRefers to the income tax expense or (benefit) reported on a company’s financial statement and is composed of the current income tax expense or (benefit) and the deferred income tax expense or (benefit). These components may also be referred to as the current income tax provision and the deferred tax provision, respectively.
- 11Permanent book–tax differencesItems of income or deductions for either book purposes or tax purposes during the year but not both. Permanent differences do not reverse over time, so over the long run, the total amount of income or deduction for the item is different for book and tax purposes.
- 12Structural tax rateThe tax rate computed by dividing a company’s income tax provision adjusted for nonrecurring permanent differences by its pretax income from continuing operations.
- 13Tax accounting balance sheetA balance sheet that records a company’s assets and liabilities at their tax bases instead of their financial accounting bases.
- 14Tax carryoversTax deductions or credits that cannot be used on the current-year tax return and that can be carried forward to reduce taxable income or taxes payable in a future year.
- 15Taxable temporary differencesBook–tax differences that will result in taxable amounts in future years when the related deferred tax liability is settled.
- 16Temporary book–tax differencesBook–tax differences that reverse over time such that, over the long term, corporations recognize the same amount of income or deductions for the items on their financial statements as they recognize on their tax returns.
- 17Uncertain tax positionA tax return position for which a corporation does not have a high degree of certainty as to its tax consequences.
- 18Valuation allowanceThe portion of a deferred tax asset for which management determines it is more likely than not that a tax benefit will not be realized on a future tax return.
Informações
- Descrição
- Key Terms
- Criado por
- Kalie Carney · set 2023
- Atualizado
- 15 set 2023
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