The Statement Of Cash Flows

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The Framework for Financial Reporting
Accounting Judgements
Statements of Income and Comprehensive Income
Statements of Financial Position and Changes in Equity; Disclosure Notes
The Statement of Cash Flows
Revenue Recognition
Financial Assets: Cash and Receivables
Cost-Based Inventories and Cost of Sales
Long-Lived Assets
Depreciation, Amortization, and Impairment
Financial Instruments: Investments in Bonds and Equity Securities

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Question 1

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True/False

Deferred income tax liabilities are amounts owed to the government.

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Question 2

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True/False

The phrase "provision for income taxes" encompasses both income tax expenses and liabilities.

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Question 3

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True/False

Deferred taxes appear on a company's balance sheet as a result of inter-period tax allocation.

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Question 4

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True/False

Temporary differences occur only because accounting standards and income tax laws differ as to when they recognize assets,liabilities,owners' equity,revenues,gains,expenses,and losses.

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Question 5

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True/False

The use of inter-period income tax allocation is mandatory under ASPE.

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Question 6

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Temporary differences relate only to items that will be recognized on both the income statement and the tax return,but in different reporting periods.

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Question 7

True/False

Permanent differences are those that factor into the computation of both net income and taxable income.

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Question 8

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Income tax expense generally equals the product of the current period income tax rate and pre-tax accounting income.

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Question 9

True/False

Under IFRS,the amount of taxes paid must be disclosed on the face of the cash flow statement.

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Question 10

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The taxes payable method results in better matching than does the comprehensive allocation method.

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Question 11

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Deferred taxes must be discounted under IFRS.

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Question 12

True/False

Deferred taxes may be classified as either current or non-current under IFRS.

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Question 13

True/False

Prepayments of Deferred income tax expense may be viewed as a deferred tax asset.

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Question 14

True/False

"Taxable amounts" include revenues and gains that are included in the tax return BEFORE they are recognized for accounting purposes.

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Question 15

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"Taxable amounts" include expenses and losses that are included in the tax return BEFORE they are recognized for accounting purposes.

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Question 16

Short Answer

Under the indirect method of preparing cash flows from operating activities,deferred income tax expense must be added back to net income.

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Question 17

True/False

Netting of deferred income tax assets and liabilities is always forbidden under IFRS and ASPE.

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Question 18

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During the originating period of a temporary difference,pre-tax accounting income is defined as taxable income plus taxable amounts minus deductible amounts.

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Question 19

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All temporary differences are related to differences in the timing of accounting recognition compared with income tax recognition.

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Question 20

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All temporary differences originate,then reverse,and eventually end with a zero net effect.

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