ACC 311 Final Exam Questions and
Already Passed Answers 2025\2026
Updated.
Income tax expense is based on:
a) pretax income
b) taxable income
c) income from continuing operations
d) operating income - Answer a) pretax income
Deferred tax expense is the:
a) decrease in a deferred tax liability.
b) increase in a deferred tax liability.
c) amount of income taxes payable for the period.
d) increase in a deferred tax asset. - Answer b) increase in a deferred tax liability.
A deferred tax liability represents the:
a) increase in taxes payable in future years as a result of taxable temporary differences.
b) increase in taxes saved in future years as a result of deductible temporary differences.
c) decrease in taxes saved in future years as a result of deductible temporary differences.
d) decrease in taxes payable in future years as a result of taxable temporary differences. -
Answer a) increase in taxes payable in future years as a result of taxable temporary differences.
A deferred tax valuation allowance account is used to recognize a reduction in:
a) a deferred tax asset only.
b) a deferred tax liability only.
c) income tax expense.
d) both a deferred tax asset and a deferred tax liability. - Answer a) a deferred tax asset only.
Tax rates other than the current tax rate may be used to calculate the deferred income tax
amount for financial statement reporting if:
, d) the enacted tax rate is expected to apply in future years. - Answer d) the enacted tax rate is
expected to apply in future years.
Which of the following statements related to loss carrybacks and carryforwards is correct?
a) The benefit due to a loss carryforward can be reported in both the loss year and future years.
b) The benefit due to a loss carryback is reported only in the second year preceding the loss
year.
c) The benefit due to a loss carryforward is reported only in the loss year.
d) The benefit due to a loss carryback can be reported in both the loss year and future years. -
Answer a) The benefit due to a loss carryforward can be reported in both the loss year and
future years.
A deferred tax liability represents the:
a) increase in taxes payable in future years as a result of taxable temporary differences.
b) decrease in taxes payable in future years as a result of taxable temporary differences.
c) increase in taxes saved in future years as a result of deductible temporary differences.
d) decrease in taxes saved in future years as a result of deductible temporary differences. -
Answer a) increase in taxes payable in future years as a result of taxable temporary differences.
A deferred tax asset represents the:
a) increase in taxes saved in future years as a result of deductible temporary differences.
b) decrease in taxes saved in future years as a result of deductible temporary differences.
c) increase in taxes payable in future years as a result of deductible temporary differences.
d) decrease in taxes payable in previous years as a result of cumulative temporary differences. -
Answer a) increase in taxes saved in future years as a result of deductible temporary
differences.
A deferred tax asset represents a:
a) future tax liability.
b) future tax expense.
c) future taxable amount.
d) future tax benefit. - Answer d) future tax benefit.
Already Passed Answers 2025\2026
Updated.
Income tax expense is based on:
a) pretax income
b) taxable income
c) income from continuing operations
d) operating income - Answer a) pretax income
Deferred tax expense is the:
a) decrease in a deferred tax liability.
b) increase in a deferred tax liability.
c) amount of income taxes payable for the period.
d) increase in a deferred tax asset. - Answer b) increase in a deferred tax liability.
A deferred tax liability represents the:
a) increase in taxes payable in future years as a result of taxable temporary differences.
b) increase in taxes saved in future years as a result of deductible temporary differences.
c) decrease in taxes saved in future years as a result of deductible temporary differences.
d) decrease in taxes payable in future years as a result of taxable temporary differences. -
Answer a) increase in taxes payable in future years as a result of taxable temporary differences.
A deferred tax valuation allowance account is used to recognize a reduction in:
a) a deferred tax asset only.
b) a deferred tax liability only.
c) income tax expense.
d) both a deferred tax asset and a deferred tax liability. - Answer a) a deferred tax asset only.
Tax rates other than the current tax rate may be used to calculate the deferred income tax
amount for financial statement reporting if:
, d) the enacted tax rate is expected to apply in future years. - Answer d) the enacted tax rate is
expected to apply in future years.
Which of the following statements related to loss carrybacks and carryforwards is correct?
a) The benefit due to a loss carryforward can be reported in both the loss year and future years.
b) The benefit due to a loss carryback is reported only in the second year preceding the loss
year.
c) The benefit due to a loss carryforward is reported only in the loss year.
d) The benefit due to a loss carryback can be reported in both the loss year and future years. -
Answer a) The benefit due to a loss carryforward can be reported in both the loss year and
future years.
A deferred tax liability represents the:
a) increase in taxes payable in future years as a result of taxable temporary differences.
b) decrease in taxes payable in future years as a result of taxable temporary differences.
c) increase in taxes saved in future years as a result of deductible temporary differences.
d) decrease in taxes saved in future years as a result of deductible temporary differences. -
Answer a) increase in taxes payable in future years as a result of taxable temporary differences.
A deferred tax asset represents the:
a) increase in taxes saved in future years as a result of deductible temporary differences.
b) decrease in taxes saved in future years as a result of deductible temporary differences.
c) increase in taxes payable in future years as a result of deductible temporary differences.
d) decrease in taxes payable in previous years as a result of cumulative temporary differences. -
Answer a) increase in taxes saved in future years as a result of deductible temporary
differences.
A deferred tax asset represents a:
a) future tax liability.
b) future tax expense.
c) future taxable amount.
d) future tax benefit. - Answer d) future tax benefit.
