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Problem 15-2 Multiple Choice
Problem 15-2 Multiple Choice
a. Permanent Differences
b. Temporary Differences
c. Taxable Temporary Differences
d. Deductible Temporary Difference
3. A deferred tax asset shall be recognized for all deductible temporary differences and
operating loss carry forward.
a. It is probable that taxable income will be available against within the deferred tax
asset can be used.
b. It is probable that accounting income will be available against which the deferred
tax asset can be used.
c. It is possible that taxable income will be available against which the deferred tax
asset can be used.
d. It is possible that accounting income will be available against which the deferred
tax asset can be used.
4. An entity shall offset a deferred tax asset and deferred tax liability when
I. The deferred tax asset and deferred tax liability relate to income taxes levied by
the same taxing authority.
II. The entity has a legal enforceable right to offset a current tax asset against a
current tax liability.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
Answers 15-2
1. B
2. C
3. A
4. C
5. A