Documenting Transactions for Income Taxes and Reporting
.docx
School
D.A. Degree College for Women**We aren't endorsed by this school
Course
ACCOINTUN JJN
Subject
Accounting
Date
Jan 15, 2025
Pages
3
Uploaded by SuperHumanUniverse17768
Documenting Transactions for Income Taxes and Reporting1.Which account is debited when documenting a deferred tax asset?o• Deferred Tax Asseto• Income Tax Expenseo• Tax Payableo• Cash2.What is the correct journal entry when recognizing income tax payable at year-end?o• Debit Income Tax Expense, Credit Income Tax Payableo• Debit Income Tax Payable, Credit Casho• Debit Cash, Credit Income Tax Payableo• Debit Income Tax Expense, Credit Retained Earnings3.Which document is typically used to report income tax withheld from employees?o• Payroll tax reporto• Tax returno• Income statemento• W-2 form4.What is the correct entry when a company makes a payment to the tax authority for taxes owed?o• Debit Income Tax Payable, Credit Casho• Debit Cash, Credit Income Tax Expenseo• Debit Income Tax Expense, Credit Income Tax Payableo• Debit Cash, Credit Income Tax Payable5.What type of entry is made when adjusting the tax base of an asset due to tax depreciation?o• Debit Deferred Tax Asset, Credit Deferred Tax Liabilityo• Debit Tax Expense, Credit Deferred Tax Asseto• Debit Deferred Tax Liability, Credit Deferred Tax Asseto• Debit Deferred Tax Liability, Credit Income Tax Payable6.When a company receives a tax refund, which account is debited?o• Tax Receivableo• Income Tax Expenseo• Income Tax Payableo• Cash7.What is the correct entry when recognizing a tax provision at year-end?o• Debit Income Tax Expense, Credit Provision for Income Taxeso• Debit Provision for Income Taxes, Credit Income Tax Payable
o• Debit Tax Expense, Credit Tax Receivableo• Debit Income Tax Payable, Credit Tax Receivable8.Which of the following is used to document taxable income for a business?o• Income tax returno• Income statemento• Balance sheeto• Journal entries9.Which account is debited when a company recognizes an income tax benefit from tax loss carryforwards?o• Deferred Tax Asseto• Income Tax Expenseo• Income Tax Payableo• Tax Receivable10.Which account is credited when documenting the accrual of income taxes owed?• Income Tax Payable• Income Tax Expense• Deferred Tax Asset• Retained Earnings11.When documenting an income tax expense, which document should be referenced?• Income tax return• Tax report• W-2 form• Payroll journal12.What is the impact of documenting a tax credit received?• Debit Tax Receivable, Credit Income Tax Expense• Debit Income Tax Expense, Credit Tax Payable• Debit Income Tax Payable, Credit Tax Receivable• Debit Tax Payable, Credit Cash13.Which document is used to report the tax liability of a business?• Income tax return• Balance sheet• Income statement• Tax report14.When tax accrual adjustments are made, which account is typically affected?• Income Tax Expense
• Income Tax Payable• Deferred Tax Liability• Tax Receivable15.Which account should be debited when a company makes a tax payment to the government?• Income Tax Payable• Income Tax Expense• Cash• Deferred Tax LiabilityAnswer Key:1.• Deferred Tax Asset2.• Debit Income Tax Expense, Credit Income Tax Payable3.• Payroll tax report4.• Debit Income Tax Payable, Credit Cash5.• Debit Deferred Tax Liability, Credit Deferred Tax Asset6.• Tax Receivable7.• Debit Income Tax Expense, Credit Provision for Income Taxes8.• Income tax return9.• Deferred Tax Asset10.• Income Tax Payable11.• Income tax return12.• Debit Tax Receivable, Credit Income Tax Expense13.• Income tax return14.• Income Tax Payable15.• Income Tax Payable