accounting Question

Question

when a deferred tax liability account ‘reserves’ :

a the actual tax paid is the same as the expense in the income statement.
b. the actual tax bill is lower than the expense in the income statement.
c. cash outflow is increased by the amount reversal.
d. cash outflow is lessened by the amount reversal.

pls explain the answer , thx a lot~~

Answer 1

問題，
遲咗給tax
不會影響，b the actual tax bill is lower than the expense in the income statement.
因為expenses一樣會入，只是今年唔給，下年給
會入返expenses 個價，因為accounting standard用accrual basic

a)the actual tax paid is the same as the expense in the income statement.
你欠下的錢，會同income statement入一樣?
一定唔是

一般，都有d數今年給咗

另外，cash outflow(錢流出)

lessen
變小,變少;減輕
你給多咗錢，reversal (儲備點會多?)

你給少咗錢，reversal就會多

因此，答案是
c. cash outflow is increased by the amount reversal.

2007-03-18 15:59:30 補充：
a)會有accrual 所以不是實際給