na 1 x x AalbCD AaBbCeDd AaBbCcD ACDE AaBbCcD Normal Subtle Heading Styles Dictate Sensitivity Editor Pane CHAPTER 19: TAXES (8 POINTS) 1. Circle the correct answer. Deferred income taxes for a company will only result when: (1 point) A. Taxable income is greater than accounting basis income as a result of a temporary timing difference. B. Accounting basis income is greater than taxable income as a result of a permanent difference. C. Carrying back a loss for 2 years to receive a refund for income taxes paid during the prior 2 years. D. All of the above. 2. Circle the correct answer. The total income tax provision on the regular income statement is always based on the applicable income tax rate and: (1 point) A. The taxable income. B. The difference between accounting basis income and taxable income. C. The accounting basis income. D. None of the above. 3. Circle the correct answer. A balance sheet that contains a deferred tax asset may be a signal indicating: (1 point) A. The company's income tax strategy is good. B. Nothing at all. C. The company's income tax strategy is suspect. D. The company's accounting basis income is greater than its taxable income.