WE WRITE CUSTOM ACADEMIC PAPERS

100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Chapter 18 Key- AASB 112 uses what term to

22. AASB 112
uses what term to describe the method for accounting for taxes that it
mandates?

A. net
balances method

B. financial
position method

C. asset and
liability method

D. balance
sheet method

Chapter – Chapter 18 #22
Difficulty: Easy
Section: Introduction to accounting for income taxes

23. The AASB
112 approach has been adopted because:

A. it
matches the revenues earned with tax payable on those revenues.

B. it is
conservative.

C. it is
considered consistent with the AASB Conceptual Framework.

D. it is
considered acceptable by the ATO.

Chapter – Chapter 18 #23
Difficulty: Easy
Section: Introduction to accounting for income taxes

24. The
generally accepted (a) accounting rule and (b) tax rule for development
expenditure are:

A. (a)
capitalise and amortise; (b) a tax deduction when paid for.

B. (b)
expense when paid for; (b) a tax deduction when paid for.

C. (c)
capitalise and amortise; (b) a tax deduction when amortised.

D. (d)
expense when paid for; (b) a tax deduction when amortised.

Chapter – Chapter 18 #24
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

25. The amount
of tax assessed by the ATO based on the entity’s operations for the period will
be reflected in which account?

A. income
tax expense

B. deferred
income tax

C. deferred
tax liability

D. income
tax payable

Chapter – Chapter 18 #25
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

26. Some items
are treated as a deduction for tax purposes when they are paid but are
recognised as expenses when they are accrued for accounting purposes. Which of
the following items are of that type?

A. long-service
leave

B. goodwill
amortisation

C. depreciation

D. entertainment

Chapter – Chapter 18 #26
Difficulty: Medium
Section: 18.01 The balance sheet approach to accounting for
taxation

27. Some items
are typically not allowable tax deductions but are recognised as an expense for
accounting purposes. Which of the following items are of that type?

A. research
and development costs

B. warranty
costs

C. sick
leave payments

D. goodwill
amortisation

Chapter – Chapter 18 #27
Difficulty: Medium
Section: 18.01 The balance sheet approach to accounting for
taxation

28. The tax
base is defined in AASB 112 as:

A. the
amount of assessable income for the period.

B. the tax
rate applicable to income levels under $60 000.

C. the
amount that is attributed to an asset or liability for tax purposes.

D. the head
office of the Australian Taxation Office in Canberra.

Chapter – Chapter 18 #28
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

29. A taxable
temporary difference is one that will result in:

A. an
increase in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled.

B. a
decrease in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled.

C. an
increase in income tax recoverable in future reporting periods when the
carrying amount of the asset or liability is recovered or settled.

D. a
decrease in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled and an increase in
income tax recoverable in future reporting periods when the carrying amount of
the asset or liability is recovered or settled.

Chapter – Chapter 18 #29
Difficulty: Medium
Section: 18.01 The balance sheet approach to accounting for
taxation

30. A
deductible temporary difference is one that will result in:

A. a
decrease in income tax recoverable in future reporting periods when the
carrying amount of the asset or liability is recovered or settled.

B. an
increase in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled.

C. a
decrease in income tax recoverable in future reporting periods when the
carrying amount of the asset or liability is recovered or settled, and an
increase in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled.

D. a
decrease in income tax payable in future reporting periods when the carrying
amount of the asset or liability is recovered or settled.

Chapter – Chapter 18 #30
Difficulty: Medium
Section: 18.01 The balance sheet approach to accounting for
taxation

31. Under the
approach of AASB 112 to accounting for income taxes, a taxable temporary
difference creates which account?

A. provision
for tax payable

B. deferred
tax asset

C. general
reserve

D. deferred
tax liability

Chapter – Chapter 18 #31
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

32. Under the
approach of AASB 112 to accounting for income taxes, a deductible temporary
difference creates which account?

A. deferred
tax revenue

B. deferred
tax liability

C. deferred
tax asset

D. provision
for tax payable

Chapter – Chapter 18 #32
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

33. Tissues
Ltd has a depreciable asset that is estimated for accounting purposes to have a
useful life of 8 years. For taxation purposes the useful life is 5 years. The
asset was purchased at the beginning of year 1, there is no residual value, and
the straight-line method of depreciation is used for both tax and accounting
purposes. The tax rate is 30% and the cost of the asset is $100 000. What is
the amount of the deferred tax liability account generated by this asset at the
end of years 1, 2 and 3?

A. End of
year 1 $0; year 2 $2250; year 3: $4500

B. End of
year 1 $7500; year 2 $15,000; year 3: $22 500

C. End of
year 1 $6750; year 2 $4500; year 3: $2250

D. End of
year 1 $2250; year 2 $4500; year 3: $6750

Chapter – Chapter 18 #33
Difficulty: Easy
Section: 18.01 The balance sheet approach to accounting for
taxation

34. Snifful
Industries has a depreciable asset that is estimated for accounting purposes to
have a useful life of 7 years. For taxation purposes the useful life is 3
years. The asset was purchased at the beginning of year 1, there is no residual
value, and the straight-line method of depreciation is used for both tax and
accounting purposes. The tax rate is 30% and the cost of the asset is $210 000.
What is the amount of the deferred tax liability account generated by this
asset at the end of years 2, 3 and 4?

A. End of
year 2: $24 000; year 3: $36 000; year 4: $27 000

B. End of
year 2: $80 000; year 3: $120 000; year 4: $90 000

C. End of
year 2: $12 000; year 3: $24 000; year 4: $36 000

D. End of
year 2: $12 000; year 3: $12 000; year 4: $(9000)

Chapter – Chapter 18 #34
Difficulty: Hard
Section: 18.01 The balance sheet approach to accounting for
taxation

35. Sinfonia
Ltd made credit sales for this period of $100 000. The allowance for doubtful
debts for these sales is $3000. For taxation purposes the amount provided for
doubtful debts is not tax-deductible and the taxation office has included the
$100 000 in taxable income. The tax rate is 30%. What is the deferral arising
from this situation?

A. none

B. deferred
tax liability of $900

C. deferred
tax asset of $900

D. deferred
tax liability of $3000

Chapter – Chapter 18 #35
Difficulty: Medium
Section: 18.02 Tax base of assets and liabilities, further
consideration

36. A company
has a loan with a carrying value of $60 000. The payment of the loan is not
deductible for tax purposes. The tax rate is 30%. What is the tax base for this
item?

A. $0

B. $60 000

C. $18 000

D. $78 000

Chapter – Chapter 18 #36
Difficulty: Medium
Section: 18.02 Tax base of assets and liabilities, further
consideration

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Instant Quote
Subject:
Type:
Pages/Words:
Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Level:
Currency:
Total Cost: NaN

Get 10% Off on your 1st order!