Income before taxes for financial reporting usually differs from taxable income reported to tax authorities. Which of the following is/are not true?
a. Some of the differences may arise because of permanent differences (items that affect income for financial reporting but never affect taxable income, or vice versa).
b. Some of the differences may arise because of temporary differences (items that affect income for financial reporting in a different period than for tax reporting).
c. The difference between income tax expense and income tax payable represents the tax effects of permanent differences: either the firm will receive future benefits (deferred tax assets) or it must pay future taxes (deferred tax liabilities).
d. U.S. GAAP and IFRS require firms to measure income tax expense based on income for financial reporting (excluding permanent differences) and the income tax authorities impose taxes on taxable income.
e. all of the above
C
You might also like to view...
Edward is paid $5 an hour less for doing a job that requires an equal level of skill, effort, and responsibility as a job performed by Elizabeth. Both Edward and Elizabeth perform under similar working conditions. Edward’s lower pay could be a violation of the ______.
A. Americans with Disabilities Act B. Executive Order 11246 C. Equal Pay Act D. Immigration Reform and Control Act
At the beginning of the year, your company borrows $20,000 by signing a four-year promissory note that states an annual interest rate of 8% plus principal repayments of $5,000 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter?
A. Increase current liabilities by $1,600; increase non-current liabilities by $20,000. B. Increase current liabilities by $5,400; increase non-current liabilities by $20,000. C. Increase current liabilities by $5,400; increase non-current liabilities by $15,000. D. Increase current liabilities by $400; increase non-current liabilities by $20,000.
_____ is the ultimate goal of a new trend in marketing that focuses on understanding consumers as individuals instead of as part of a group
a. Organizational optimization b. Profit maximization c. Total quality management (TQM) d. Customer relationship management (CRM)
______________ is the process of adapting certain functions to accommodate the language, culture, or governing laws of a different country.
a. Integration b. Standardization c. Localization d. Responsiveness