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A corporation that incurs a net operating loss may carry the loss back 2 years and forward:

Multiple Choice

• 25 years.

• 10 years.

• 20 years.

• 12 years.

Which of the following statements is not true?

Multiple Choice

• Tax strategy, regardless of the generation of deferred tax liabilities, affects cash flow.

• The use of certain tax accounting methods (such as accelerated depreciation) increases cash flows in the early years.

• Generating deferred tax liabilities always increases cash flows.

• All of these answer choices are true statements.

Which of the following items used for resolving intra-firm comparisons is not generally disclosed?

Multiple Choice

• Depreciation methodology straight line or accelerated.

• Adjustments to deferred tax assets related to asset sales.

• Deferred tax assets related to property plant and equipment.

• Differences between book and tax depreciation.

Which of the following correctly describes the tax rates used under U.S. GAAP and IFRS for deferred taxes?

Multiple Choice

• Both GAAP and IFRS use substantively enacted tax rates.

• GAAP uses enacted or substantively enacted rates while IFRS uses only enacted tax rates.

• GAAP uses enacted tax rates while IFRS uses enacted or substantively enacted tax rates.

• Both GAAP and IFRS use only enacted tax rates.

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