Here is the list I am talking about – it refers to the timing/temporary differences in accounting purposes and tax reporting purposes – the final tax expense will be netted by DTA and DTL balances.
My question is this – will we as Level 1 Candidates be expected to memorize this list? Or will questions provide us information on each scenario – for example Bad Debt Expense is recognized immediately for accounting, but for tax reporting, it is delayed – are we given this information in the question prompt or expected to know it by heart?
You’re expected to be able to recognize a situation that will create a DTA or a DTL. You shouldn’t memorize the list; you should understand why each item on the list creates a deferred tax item. Once you understand the logic, you can apply it to whatever situation they give you on the exam.
To a lay audience, they probably come the closest to how real magic would look.
Of course, I’m talking about those who use their powers only for good.
I will typically end my close-up act with a bit of clairvoyance: a spectator takes a deck of cards, turns some of the cards face-up and leaves some face-down, and shuffles them together. With my eyes covered by a spectator’s hands (so I truly cannot see the cards), I determine how many are face-up and how many are face down, the exact red/black color mix of the face-up cards, and the exact suit mix of, say, the black face-up cards. I end with a specific prediction about the mix of cards that has been sitting in plain sight (out of my reach) the entire time.
