The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions.

______1. The deferred tax consequences of future deductibles amounts and operating loss carryforwards
______2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively
______3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively
______4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax law, resulting from temporary differences and operating loss carryforwards at the end of the current year
______5. The change during the year in a corporation€™s deferred tax liabilities and assets
______6. The deferred tax consequences of future taxable amounts
______7. The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized
______8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively
______9. The sum of income tax obligation and deferred tax expense (or benefit)
______10. The amount of income taxes paid or payable (or refundable) for the current year
______11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year
______12. The excess of taxable revenues over tax deductible expenses and exemptions for the year
______13. An excess of tax deductible expenses over taxable revenues in a year that may be carried back to reduce taxable income in a prior year
Required
Indicate which terms belongs with each definition by inserting the corresponding code letter on the line preceding thedefinition.

Transcribed Image Text:

Code Letter Term Code Letter Term Future deductible amount Income tax obligation (or refund Operating loss carryback Valuation allowance Deferred tax asset Operating loss carryforward Taxable income H Deferred tax consequences Future taxable amount 1 Deferred tax liability Temporary difference L Income tax expense (or benefit) E M Deferred tax expense (or benefit) G