Section 3: 25–35%3D
Accounting for Income Taxes
Income tax accounting is complex and heavily tested. AICPA tests temporary vs. permanent differences, deferred tax assets and liabilities, and the valuation allowance.
What AICPA Wants You to Know
- 1Distinguish between temporary and permanent differences
- 2Calculate deferred tax assets and liabilities
- 3Determine when a valuation allowance is needed
- 4Calculate income tax expense (current + deferred)
- 5Understand carrybacks and carryforwards