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Accounting for Corporate Income Taxes Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is generally excluded from the calculation of gross income?

Question 2 2. The dividends that a company pays to its shareholders _____.

Question 3 3. Which of the following answer choices BEST illustrates double-taxation on corporate income?

Question 4 4. What happens when there are temporary differences between accounting income and taxable income?

Question 5 5. Which of the following is recognized revenue for GAAP purposes but is excluded from taxable income under the tax law?

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Question 6 6. The current tax and deferred tax expenses are reported as _____ expenses on an income statement.

Question 7 7. A company reports its income tax on its income statement as $125,000. If the company also reports deferred income tax asset of $6,000, which of the following is true?

Question 8 8. The fact that municipal bond interest is recognizable GAAP income but is specifically excluded from taxable income under the tax law creates _____.

Question 9 9. For accounting purposes, Jackson Enterprises has depreciation expenses of $40,000. For tax purposes, its depreciation expenses are $30,000. If the company's tax rate is 20%, how much deferred tax liability will the company need to record?

Question 10 10. Which of the following affect multiple years and create a conceptual matching issue called interperiod tax allocation, many of which reverse over time?

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Question 11 11. How does a company calculate pre-tax financial income?

Question 12 12. What is the amount of pre-tax financial income in the income statement shown below?

Question 13 13. In order to calculate earnings before income tax, a company must subtract all of the following from its sales revenue EXCEPT:

Question 14 14. A company's year-end financial statement shows that it has generated $1,850,000 in revenues. The cost of goods sold is $600,000; expenses, other than income taxes, are $205,000; and income taxes are $165,000. If the company has other revenue of $14,000 and net income of $87,000, what is its earnings before taxes?

Question 15 15. The deferred tax expense component of the current period tax provision is calculated as the period change in:

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Question 16 16. Why is a valuation allowance needed against the value of a deferred tax asset?

Question 17 17. The term taxable amount refers to:

Question 18 18. Methods used in the United States' GAAP guidance to address the issue of interperiod tax allocation include _____ and _____.

Question 19 19. Corporations report their taxable income on a Form _____.

Question 20 20. Corporate taxable income equals _____ minus _____.

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Question 21 21. Corporate dividends are:

Question 22 22. Corporate expenses are:

Question 23 23. The current GAAP guidance on deferred taxes is found in _____.

Question 24 24. Although it has no corresponding GAAP asset, a net operating loss for tax purposes is classified as a _____ difference.

Question 25 25. Permanent differences are generally a result of _____ differences between GAAP and tax accounting principles.

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Question 26 26. _____ book tax differences affect multiple years, whereas _____ book tax differences affect a single year only.

Question 27 27. Pre-tax financial incomes is also referred to as _____

Question 28 28. All of the following line items carry the most 'weight' when calculating pre-tax income EXCEPT for _____

Question 29 29. Analysts like pre-tax income because it allows them to compare companies who have different levels of _____

Question 30 30. _____ is the earnings a company generates before deducting the taxes it needs to pay.

Accounting for Corporate Income Taxes Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 202: Intermediate Accounting II  /  Business Courses
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