CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

The income tax paid in excess is recognized as ______.

A. a tax liability
B. an asset but not a deferred tax asset
C. a deferred tax asset
Correct Answer: B

It should be separate from deferred taxes on a company's balance sheet.

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 ♥
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