Info
Warning
Danger
/ Homework Answers / Accounting / 11) Income tax expense appears the: A) tax return. B) statement of

Question

11) Income tax expense appears on the:

A) tax return.

B) statement of stockholders' equity.

C) income statement.

D) balance sheet.

12) Income tax payable appears on the:

A) tax return.

B) statement of stockholders' equity.

C) income statement.

D) balance sheet.

13) The amount of tax to pay the government in the next period is known as:

A) deferred tax asset.

B) deferred tax liability.

C) income tax expense.

D) income tax payable.

14) Which of the following statements is true?

A) The income tax return is prepared using GAAP.

B) The income tax return is prepared using rules set by the SEC.

C) The income tax return is prepared using rules set by the IRS.

D) The income tax return and the financial statements are the same documents.

15) The formula to determine income tax expense is:

A) taxable income (from the income tax return) multiplied by the income tax rate.

B) taxable income(from the income statement) multiplied by the income tax rate.

C) income before income tax expense (from the tax return) multiplied by the income tax rate.

D) income before income tax expense (from the income statement) multiplied by the income tax rate.

16) The formula to determine income tax payable is:

A) taxable income (from the income tax return) multiplied by the income tax rate.

B) taxable income(from the income statement) multiplied by the income tax rate.

C) income before income tax expense (from the tax return) multiplied by the income tax rate.

D) income before income tax expense (from the income statement) multiplied by the income tax rate.

17) When pretax accounting income exceeds taxable income:

A) Deferred Tax Asset is debited.

B) Deferred Tax Liability is credited.

C) Prepaid Income Tax is credited.

D) Prepaid Income Tax is debited.

18) Southern Corporation has pretax accounting income of $575,000 and taxable income of $560,000. The company's income tax rate is 35%. The entry to record the income tax includes a:

A) debit to Deferred Tax Asset $5,250.

B) debit to Deferred Tax Asset $196,000.

C) credit to Deferred Tax Liability $5,250.

D) credit to Deferred Tax Liability $196,000.

19) Western Corporation has taxable income of $390,000 and pretax accounting income of $363,000. The company's income tax rate is 35%. The entry to record the income tax includes a:

A) debit to Income Tax Expense $136,500.

B) debit to Deferred Tax Asset $127,050.

C) debit to Deferred Tax Asset $9,450.

D) credit to Income Tax Payable $127,050.

20) The estimated value of a company's stock is less than the current market value of the company. The appropriate investment decision should be to:

A) buy the company's stock.

B) hold the company's stock.

C) sell the company's stock.

D) purchase the bond's that the company has issued.

Solution
5 (1 Ratings )

Solved
Accounting 2 Days Ago 9 Views
This Question has Been Answered!
Premium Content -