For SkyEssays Only

1) Why are there differences between taxable and financial income?  What are some examples of permanent and temporary differences?  Why do these differences exist?  How do they affect the financial statements?

2) How are deferred tax assets and deferred tax liabilities derived?  How do they relate to the difference between tax expense and taxes payable?  How could an organization have tax receivable?  Why is the tax expense reported on the income statement comprised of current and deferred tax?

3) How are the tax benefits of net operating losses (NOL) disclosed on the financial statements?  Which is more beneficial to an organization, an NOL carryforward or an NOL carryback?  Explain why.  When would a company decide to forego a carryback?

4) What are the components of pension expense?  How is the interest rate determined?  Why are prior service costs amortized?  How do the components of pension expense differ among the various types of contribution and benefits plan?

5) How does a pension plan differ from a 401(k) plan?  As an employee, would you rather have a pension or a 401(k) plan?  Explain why.  If you were an employer, would your decision change?  Explain why or why not.

6) What are the differences and similarities between a defined contribution plan and a defined benefit plan?  Explain why.  As an employer, would you rather offer a defined contribution plan or a defined benefit plan?  Explain why.  As an employee would you rather offer a defined contribution plan or a defined benefit plan?  Explain why.

7) What is a change in accounting principle?  How do you determine if a change in principle should be reported retroactively, currently, or prospectively?  How do these changes affect the financial statements?

8) Why do accountants make errors?  What types of errors may occur?  Why is it necessary to correct them?  What are the ramifications of not correcting them?

9) What are some examples of counterbalancing errors?  What are some examples of noncounterbalancing errors?  What are the differences between the two?  How are each handled?  Does it matter if the books are closed?  Explain why or why not.