Accounting for both income tax and financial reporting purposes is governed by U.S. GAAP. Group of...
Accounting for both income tax and financial reporting purposes is governed by U.S. GAAP.
Group of answer choices
True
False
Homework Answers
Answer-------------False.
.
The accounting for financial statements in the US is governed by either GAAP or IFRS (International financial reporting standards). The accounting done for tax purpose by the government is different from that of GAAP.
The difference in income as per GAAP and tax purpose is different which is the reason we have Deferred Tax liability and differed tax assets in the accounts.
The IRS is responsible for accounting for tax purpose.
Add Answer to:
Accounting for both income tax and financial reporting purposes
is governed by U.S. GAAP.
Group of...
In most cases, the depreciation method chosen for financial reporting purposes (GAAP) must also be utilized...
In most cases, the depreciation method chosen for financial reporting purposes (GAAP) must also be utilized for income tax reporting (IRS). O True False
Currently, both U.S. GAAP and the International Financial Reporting Standards are acceptable for international use. True...
Currently, both U.S. GAAP and the International Financial Reporting Standards are acceptable for international use. True False
Absorption costing is NOT required for financial accounting purposes but is required for managerial reporting purposes....
Absorption costing is NOT required for financial accounting purposes but is required for managerial reporting purposes. True False
Company A had a before-tax loss of $50 for both financial accounting and tax purposes in...
Company A had a before-tax loss of $50 for both financial accounting and tax purposes in 2020, and has a tax rate of 20%. Company A will have: Group of answer choices A 2020 net loss of $40 and a deferred tax asset of $10 A 2020 net loss of $40 and a deferred tax asset of $50 A 2020 net loss of $50 and a deferred tax asset of $10 A 2020 net loss of $50 and a deferred...
(9 You can use Variable Costing in financial statement preparation under GAAP for external reporting purposes....
(9 You can use Variable Costing in financial statement preparation under GAAP for external reporting purposes. True False
ina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes....
ina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for 2017 and 2018, assuming that based on the weight of available evidence, it...
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes....
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Collapse question part (a) Prepare the journal entries for the years 2015–2018 to record income tax expense (benefit)...
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Which of the following is true with regard to pension accounting under GAAP and IFRS? Group...
Which of the following is true with regard to pension accounting under GAAP and IFRS? Group of answer choices The accounting for defined-benefit pension plans is the same under GAAP and IFRS. Accounting for defined-benefit pensions is typically a less important issue in the U. S. than in other parts of the world. Prior service cost is recognized on the balance sheet under both GAAP and IFRS. Prior service cost is amortized into income over the expected service lives of...
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
In most cases, the depreciation method chosen for financial reporting purposes (GAAP) must also be utilized for income tax reporting (IRS). O True False
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
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