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Interperiod Tax Allocation: Permanent & Temporary Differences

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

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

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

2. Depreciation expense is a _____ difference and is classified for purposes of analyzing deferred taxes as a _____ difference.

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About This Quiz & Worksheet

Completing this quiz is an easy way to test your knowledge of interperiod tax effects, such as the cause of permanent differences. Conveniently, you can take this quiz more than once to ensure you understand this topic.

Quiz & Worksheet Goals

You'll be quizzed on the following:

  • Where to find current GAAP guidance on deferred taxes
  • The effect of book tax differences
  • What depreciation expense is and how it's classified
  • Classification of a net operating loss for tax purposes
  • Permanent differences

Skills Practiced

  • Interpreting information - verify that you can read information about current GAAP guidance on deferred taxes and interpret it correctly
  • Information recall - access the knowledge you've gained about book tax differences
  • Knowledge application - use your knowledge to answer a question about how depreciation expense is classified

Additional Learning

Strengthen your knowledge of this topic by reviewing the lesson titled Interperiod Tax Allocation: Permanent & Temporary Differences. Here are a few examples of what the lesson covers:

  • An overview of deferred taxes and interperiod tax allocation
  • Deferred tax assets and deferred tax liabilities
  • An example of net operating loss (NOL)
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