Chapter 25

1. Accounting income is the income for a period before deducting tax expense.

2. These are differences that will result in future taxable amount in determining taxable
income of future periods. Taxable Temporary Differences

3. These are differences that result in future deductible amount in determining taxable
income in future periods. Deductible temporary differences

4. In computing the current tax asset or current tax liability, which tax rate is used?
Current tax rate

5. In computing the deferred tax asset or liability, which tax rate is used? Enacted future
tax rate

6. When temporary difference will result in taxable amount in future years a deferred tax
liability is recognized in the current year.

7. A deferred tax liability shall be recognized for all taxable temporary differences.

8. It is the deferred tax consequence attributable to a deductible temporary difference

and operating loss carryforward. Deferred tax asset

9. It is the amount of income tax payable related to taxable income. Current tax expense

10.It is the sum of the amount of income tax payable and deferred tax liability related to
accounting income. Tax expense reported in the income statement