TRUE OR FALSE

1)A change in accounting method does not require consideration of the income tax impact if it only

increases or decreases deferred tax assets/liabilities (True / False)

2)Deferred taxes are recorded to account for permanent differences (True / False)

3)An increase in the Deferred Tax Liability account on the balance sheet is recorded by a DEBIT to the

Income Tax Expense account (True / False).

4)A valuation account is needed whenever it is judged to be more likely than not a deferred tax liability will

not be realized (True / False)

5)A change in calculation of deferred taxes due to a change in enacted tax rates is considered a change in

accounting estimate and corrected prospectively

(True / False)