Term
| Revenue items reported on the tax return after the income statement |
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Definition
-Installment sales of property
-Unrealized gain from recording investment at fair value. |
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Term
| Expense items reported on the tax return after the income statement |
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Definition
-Estimated expenses and losses
-Unrealized loss from recording investments at fair value or inventory at LCM. |
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Term
| Revenue items reported on the tax return before the income statement. |
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Definition
-Rent collected in advance.
-Subscriptions collected in advance.
-Other revenue collected in advance. |
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Term
| Expense items reported on the tax return before the income statement. |
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Definition
-Accelerated depreciation on tax return
-Prepaid expenses. |
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Term
| When is a valuation allowance needed? |
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Definition
| A valuation allowance is needed if it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
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Term
| What are the two components of Income Tax expense? |
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Definition
| The tax payable now and the tax deferred until later. |
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Term
| What is a net operating loss? |
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Definition
| A net operating loss is negative taxable income: tax-deductible expenses exceed taxable revenues. |
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Term
| What is intraperiod tax allocation? |
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Definition
| It is allocating income taxes within a particular period. |
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Term
| What does SFAS 109 focus on? |
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Definition
| The balance sheet and recognition of liabilities and assets. |
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Term
| What is a deferred tax liability? |
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Definition
| A deferred tax liability are taxes to be paid when future taxable amounts become taxable. |
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Term
| What is a deferred tax asset? |
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Definition
| A deferred tax asset is taxes to be saved in the future when future deductible amounts reduce taxable income. |
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Term
| What is a future deductible amount? |
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Definition
| The future tax consequence of a temporary difference will be to decrease taxable income relative to accounting income. |
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Term
| What is a deferred tax liability (or asset) based on? |
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Definition
| It is based on enacted tax rates and laws. |
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Term
| What is a net operating loss? |
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Definition
| It is negative taxable income: tax deductible expenses exceed taxable revenues. |
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