Explain the Meaning and Significance of Each of the Following

question 11

Essay

Explain the meaning and significance of each of the following terms in accounting for company income tax:
(i)Tax payable method
(ii)Tax Allocation - the balance sheet approach
(iii)Deferred tax asset
(iv)Deferred tax liability
(v)Tax base
(vi)Permanent difference

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Definitions:

Triglyceride

A type of fat (lipid) found in your blood, originating from foods or produced by the body, used for energy or stored as fat.

Venipuncture

The process of puncturing a vein with a needle to withdraw blood or administer medication.

Aneurysm

An abnormal bulge or ballooning in the wall of a blood vessel, which can be life-threatening if it ruptures.

Diastole

The stage of the cardiac cycle during which the heart muscle relaxes, permitting the chambers to be filled with blood.