Identify future taxable amounts and future deductible amounts A difference of when a revenue (or gain)/expense (or
Question:
Identify future taxable amounts and future deductible amounts
A difference of when a revenue (or gain)/expense (or loss) is included in financial income and when it is included in taxable income is referred to as a temporary difference. A temporary difference originates in one period and reverses in a subsequent period. Temporary differences will result in taxable or deductible amounts in future periods. A future taxable amount means future taxable income will be increased relative to pretax accounting income, whereas a future deductible amount means taxable income will be decreased relative to accounting income, when that temporary difference reverses. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences (and operating loss carryforwards).
write the journal entry and highlight balance sheet account, 2) highlight or circle the items in the shaded parts of the statement.
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones