A Deferred Tax Asset Indicates That a Firm Will Realize
A deferred tax asset indicates that a firm will realize the tax benefit of an event sometime in the future.
Deferred tax liabilities occur when expenses are deductible for book purposes before tax purposes.
Identify which of the following statements is true.
A)A corporation is a separate taxpaying entity that must file a tax return annually.
B)A newly formed corporation must select its basic accounting method.
C)The terms "regular corporation" and "C corporation" are synonymous.
D)All of the above are true.
Identify which of the following statements is false.
A)A corporation's fiscal year generally must end on the last day of the month.
B)A fiscal year may not end on December 31.
C)A new corporation can elect a fiscal year that runs from February 16 to February 15 of the following year.
D)A corporation's first tax year may not cover a full 12-month period.