ACC2100 Lecture Notes - Lecture 2: Annual Leave, Deferred Tax, Accrual
13 Aug 2018
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Tutorial questions: c h 6 rq 2, 3, 4, 5 and pq 6. 2, 6. 10 (a), 6. 13 (a) Question 6. 2 lo 4, 5 current tax liability in four cases. The chief financial officer of lost weekend ltd has asked you to calculate the taxable income and prepare the journal entry for the current tax liability in each of the following four cases. 13 080 (recognition of current tax liability, based on the current taxable income for the year) C h 6 rq 2, 3, 4, 5: explain why income tax expense is usually not equal to accounting profit multiplied by the corporate tax rate. Your answer should refer to the main principles of accounting for income tax. Because income tax expense is calculated based on cash basis. While accounting profit is accounted based on accrual basis. This means some deductible expense/income is subtracted only when paid/received.
