Question $1(1$ point$)$

IFRS requires that any Valuation Allowance account balances $($if used$)$ be shown separately on the Statement of Financial Position.

Question $1$ options:

True

False

Question $2(1$ point$)$

In the year in which a tax loss is incurred, the tax loss must equal the net loss reported on the company's financial statements.

Question $2$ options:

True

False

Question $3(1$ point$)$

A company carrying back a loss must use the earliest year first.

Question $3$ options:

True

False

Question $4(1$ point$)$

Under current law, at the end of the year of loss or anytime during the next $15$ years, a company may select to either carry back or carry forward$-$only the loss.

Question $4$ options:

True

False

Question $5(1$ point$)$

If a potential benefit of a loss carry forward that was previously determined to meet the more likely than not criteria has now been determined not to meet the criteria, it should be reversed.

Question $5$ options:

True

False

Question $6(1$ point$)$

A tax loss represents the present and deferred benefit that the company will be able to realize from the tax loss through a reduction of income taxes paid to governments.

Question $6$ options:

True

False

Question $7(1$ point$)$

The recovery of income tax expense is credited to income tax expense $($recovery$)$ account.

Question $7$ options:

True

False

Question $8(1$ point$)$

Under IFRS, the income tax expense pertaining to continuing operations must be presented on the face of the income statement.

Question $8$ options:

True

False

Question $9(1$ point$)$

Deferred tax amounts must be revalued whenever substantially enacted tax rates change.

Question $9$ options:

True

False

Question $10(2$ points$)$

A tax loss represents:

Question $10$ options:

the final number of the taxable loss on the tax return.

the amount of refund to be received in the year.

assistance from the government.

the present and deferred benefit that the company will be able to realize from the tax loss through a reduction of income taxes.

Question $11(2$ points$)$

All of the following are evidence to support recognition of a deferred income tax benefit except:

Question $11$ options:

It is acceptable industry practice to recognize the deferred income tax benefit.

There are existing taxable temporary differences to absorb the loss.

An excess of fair value over the tax basis of the enterprise's net assets in an amount sufficient to realize the deferred income tax asset.

A strong earnings history suggesting that losses are not expected to continue.