Tut 2 ACC705 chap 6 Q n SS - Tut 2 ACC705 Tutorial...

Tut 2 ACC705
Tutorial Exercises
Chp 6 : RQ 2,3, Q6.1, 6.2, 6.4
2. Explain why income tax expense is usually not equal to accounting profit
multiplied by the corporate tax rate. Your answer should refer to the main
principles of accounting for income tax.
3. Accounting profit is based on a full accrual model whereas taxable profit is based
on a partial accrual model. Explain this comment by reference to the following
items: long service leave, doubtful debts, prepayments, warranty costs, interest
costs, development costs and rent received in advance.