ACCA F7 - 15. Taxation Exam Questions
and Answers
Definition of current tax? - ANSWERIncome taxes payable/recoverable relating to a periods taxable
profit or lossIr.
Current tax unpaid for current and prior periods is recognised as what? - ANSWERA liability
Current Tax paid in excess of amount...
2. Provision double entry means Tax Expense on P+L will start 850.00 in credit (60000-850)= 59,150.0
What is Deferred Tax? - ANSWER✔✔It is not a tax paid but is an accounting adjustment
What type of situations does deferred tax deal with? - ANSWER✔✔When the accounting treatment is
different than the tax treatment
What type of differences are there between accounting and tax treatments? - ANSWER✔✔*Permanent*
- i.e. you cannot deduct Entertaining from profits with a tax treatment perspective but can from
accounting treatment perspective
*Temporary* - i.e. arising from a difference in timing
Deferred tax is the tax attributable to? - ANSWER✔✔Temporary Differences
Temporary differences are the differences between? - ANSWER✔✔The carrying amount of the asset and
tax base of the asset
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