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A corporation that incurs a net operating loss may carry the loss back 2 years and forward:
Multiple Choice
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25 years.
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10 years.
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20 years.
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12 years.
Which of the following statements is not true?
Multiple Choice
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Tax strategy, regardless of the generation of deferred tax liabilities, affects cash flow.
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The use of certain tax accounting methods (such as accelerated depreciation) increases cash flows in the early years.
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Generating deferred tax liabilities always increases cash flows.
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All of these answer choices are true statements.
Which of the following items used for resolving intra-firm comparisons is not generally disclosed?
Multiple Choice
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Depreciation methodology straight line or accelerated.
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Adjustments to deferred tax assets related to asset sales.
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Deferred tax assets related to property plant and equipment.
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Differences between book and tax depreciation.
Which of the following correctly describes the tax rates used under U.S. GAAP and IFRS for deferred taxes?
Multiple Choice
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Both GAAP and IFRS use substantively enacted tax rates.
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GAAP uses enacted or substantively enacted rates while IFRS uses only enacted tax rates.
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GAAP uses enacted tax rates while IFRS uses enacted or substantively enacted tax rates.
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Both GAAP and IFRS use only enacted tax rates.
Answer & Explanation
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