question archive Match the appropriate items to each type of temporary differences
Match the appropriate items to each type of temporary differences
Subject:AccountingPrice:2.84 Bought4
Match the appropriate items to each type of temporary differences. Review Later A. Deductible Temporary Differences Generally arise when there are differences that result in current accounting income being greater than taxable income B. Taxable Temporary Differences Give rise to deferred tax assets Generally arise when the tax base of the assets is greater than the carrying amount Arise when the tax base of the liabilities is greater than the carrying amount Arise when the carrying amount of the liabilities is greater than the tax base Give rise to deferred tax liabilities
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- All the descriptions are incorrect in relation to operating lease.
- Operating lease is the lease that does not transfer all risk and rewards incidental to the owner of the leased asset. In order to classify the lease as finance lease entity has to meet certain condtion if lease not finance lease then you can classify as operating lease.
| Matching the temporary difference | |
| A.Deductible Temporary difference | Generally arise when there is differences that results in current accounting income being greater than taxable income |
| A.Deductible Temporary difference | Give rise to defferred tax assets |
| A.Deductible Temporary difference | Generally arise when the tax base of the asset is greater than the carrying amount |
| B. Taxable Temporary difference | Arise when the tax base of liabilities is greater than the carrying amount |
| A.Deductible Temporary difference | Arise when the carrying amount of the liabilities is greater than the tax base. |
| B. Taxable Temporary difference | Give rise to deferred tax liabilities |
Notes:
- Deferred tax assets are the amount of income taxes recoverable in the future period - Deductible temporary difference.
- Deffered tax liabilities are the amount of income taxes payable in the future period - Taxable temporary difference.
