INCOME TAXES EXAM WITH ANS 2024 LATEST VERSION

1. Describe the differences between accounting profit and taxable income and define key terms, including deferred tax assets, deferred tax liabilities, valuation allowance, tax payable, and income tax expense. Definition of Accounting Profit A...

Topic Outline a) Classification of Individual Income Taxpayers b) Sources of Income c) Graduated Tax Rate d) Individual Income Taxpayers e) Basic Proforma Income Tax Computation f) Passive Income, Capital Gains and Fringe Benefits Classification of Individual Income Taxpayers 1. Resident Cit...

Income – in broad sense, means ALL WEALTH, which flows into the tax payer other than a mere return of capital. - it is the return in money from one’s business, labor, or capital invested (gains, profits, salary and wages). - it is a flow of t...

INTERNATIONAL ACCOUNTING STANDARD 12 INCOME TAXES OBJECTIVE SCOPE 1 DEFINITIONS 5 Tax base 7 RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS 12 RECOGNITION OF DEFERRED TAX LIABILITIES AND DEFERRED TAX ASSETS 15 Taxable temporary differences 15 Deductible temporary differences...

Tax vs. Financial Reporting I • Tax reporting (thousands) Sales €100,000 Less: Cost of Goods Sold (70,000 Gross Profit €30,000 Less: SG&A ( Less: Depreciation (8,000 Taxable Income €12,000 Income Tax Payable @ 30% 30%(3,600 Profit after Tax €8,400

1. What is the difference between taxable income and accounting income? Answer: Taxable income is the amount of income that is subject to tax under the tax laws, while accounting income is the amount of income that is reported in the financial statements in accordance with accounting principles. 2....

1. Discuss the two-step process for recognizing and measuring tax benefit of uncertain tax position. Under the FASB interpretation no.48 (FIN 48) accounting for uncertainty in income taxes, there is a clear threshold set for the purpose of recognizing the benefits of tax positions in the financial ...

I. THEORY 1. Taxable income of a corporation a. differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. b. differs from accounting income due to differences in interperiod allocation and permanent differences between the two meth...

Under the Philippine's National Internal Revenue Code of 1997 (the "Tax Code"), the term "corporation includes partnerships, no matter how created or organized, joint-stock companies, joint accounts (cuentas en participation), associations, or insurance companies, but excluding general professio...

Income Taxes • Accounting income = GAAP • Federal income = IRS • Intraperiod: allocate current year income tax, internal issue. • Interperiod: allocate between year, permanent and temporary differences.

Multiple Choice 1. Provincial, city, municipal, and barangay ordinances may impose taxes subject to limitations by the Local Government Code. The following, except one, are existing taxes thereunder. Which is it? a. Professional tax b. Community tax c. Travel tax d. Real property tax 2. As to ...

Objective of PAS 12 The objective of PAS 12 is to prescribe the accounting treatment for income taxes. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of: a. The future recovery or settlement of the carrying amount of assets or liabi...

A. INDIVIDUAL INCOME TAX 1. Persons subject to the individual income tax For income tax purposes, individual taxpayers are classified into: a. Citizen (1) Resident citizen - is a citizen of the Philippines who has a permanent home or place of abode in the Philippines to which he/she intends t...

Learning Objectives: 1. Explain why the profit presented in the financial statements may be different from the taxable profit 2. Determine the tax base of assets and liabilities 3. Compute for income tax expense and current tax expense 4. Compute for deferred tax assets and deferred tax liabilit...