The decision to extend credit beyond the normal credit limit is an
example of
Question 17
Control risk is
Question 18
Which of the following represent temporary book-tax differences?
Question 19
North, Inc., earns book net income before tax of $500,000 in 2010. In
computing its book income, North deducts $50,000 more in warranty
expense for book purposes than allowed for tax purposes. North has
no other temporary or permanent differences. Assuming the U.S. tax
rate is 35% and no valuation allowance is required, what is North's
deferred income tax asset reported on its financial statements for
2010?
Question 20
How are deferred tax liabilities and assets categorized on the balance
sheet?
Question 21
Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative
deferred tax asset and liability accounts with Cold, which of the
following should Hot do?
Question 22
Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign
corporation and Yellow, Inc., a domestic corporation. Paint also owns
40% of Green, Inc., a domestic corporation. Paint receives no
distributions from any of these corporations. Which of these entities'
net income are included in Paint's income statement for current year
financial reporting purposes?
Question 23
Nocera, Inc. earns book net income before tax of $600,000 in 2010.
Nocera acquires a depreciable asset in 2010 and first year tax
depreciation exceeds book depreciation by $120,000. Nocera has no
other temporary or permanent differences. Assuming the U.S. tax rate
is 35%, what is Nocera's total income tax expense reported on its
financial statements for 2010?