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Basic Question 16 of 20
The income tax paid in excess is recognized as ______.
B. an asset but not a deferred tax asset
C. a deferred tax asset
A. a tax liability
B. an asset but not a deferred tax asset
C. a deferred tax asset
User Contributed Comments 19
| User | Comment |
|---|---|
| zeiad | WHY NOT A DEFERRED TAX ASSET ? |
| olagbami | because the question didn't say in excess of income tax expense |
| czar | OMG! this topic drives me nuts! :) |
| cfaajay | It will be treated as advance tax. Remember deferred will come into because of matching principle of accounting whereas advance tax is not based on gap between accnting and tax deptt. |
| viruss | I will soon start to become violent with my computer with this topic ... DTL & DTA make me want to drop this stuff lol |
| Kobe8kenji | viruss, u really make my day lol |
| moneyguy | ...so the extra-payment of taxes creates a prepaid tax account on the asset side of the Balance Sheet? |
| johntan1979 | :( I almost vomited blood... :( |
| emy1 | just when i think i have this topic mastered...fml:-( |
| jonan203 | jeez, taxes is like splitting split ends... |
| gill15 | THats actually pretty crazy. If this question shows up on the exam..I'll be soo happy... Tick...These are the ones you remember.. |
| ldfrench | Does anyone have a 6 foot long piece of rope? Asking for a friend... |
| praj24 | Can't stand this topic....arrrrgggghhhhhhh |
| Inaganti6 | IN EXCESS OF WHAT ? There's no specificity . I really really really believe they do their darnest to make sure you DON'T PASS. |
| cfastudypl | at least it is not the real exam yet, so you have time to make all the corrections and adjustments. Thanks to AN! |
| ashish100 | Olagbami made it so simple. Everyone chill!! WEGONNAMAKEIT! or whatever that guy's username was |
| maryprz14 | Oh GOD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! can a question be any trickier? !!!!! |
| khalifa92 | deferred tax assets reverse systematically like in depreciation but tax assets are a bit different |
| Freddie33 | I love CFA ♥ |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis
CFA® 2024 Level I Curriculum, Volume 3, Module 9.