corporate income tax is an expense, not a distribution of the profits to the government
1) Which one is false?a) corporate income tax is an expense, not a distribution of the profits to the governmentb) non taxable revenue causes permanent differences between pretax accounting income and taxable incomec) In general, temporary differences are resulted from timing difference between GAAP and tax regulationsd) Non-tax-deductible expense causes the temporary difference2) Which one is false?a) Current GAAP requires the deferred methodb) An NOL (net operating loss) occurs when taxable revenues and gains are less than total tax deductionsc) the asset/liability method of income tax allocation is balance sheet oriented3) Which one is false?a) company should report changes in the deferred tax asset and liability accounts as footnotes in 10-kb) company does not have to report tax carrybacks and carry forwards in 10-kc) Tax accounting is related to the quality of earningsd) Tax accounting is related to the ability to assess future cash flows4) Please briefly discuss the changes made in SFAS 158 and SFAS 132 (revised in 2003) compared with SFAS 87.