DTL/DTA simple definitions

CFA Level I
#1

Just a quick one - am I correct in saying that: DTA: tax expense (financial accounting term) < tax payable (tax terminology) DTL: tax expense (financial accounting term) > tax payable (tax terminology) THANK YOU!

#2

can someone pls reply?

#3

correct

#4

so let’s say: 1st year: DTL = 300 2nd year: tax expense < tax payable , 500 - should we create DTA = 500 or DTL is being reversed and DTA = 500-300=200? always getting confused here…

#5

bump

#6

reg Wrote: ------------------------------------------------------- > Just a quick one - am I correct in saying that: > > DTA: tax expense (financial accounting term) < tax > payable (tax terminology) > > DTL: tax expense (financial accounting term) > tax > payable (tax terminology) > > THANK YOU! yeah, that is right

#7

Just remember this… Taxes PAYABLE = Tax Statement Tax EXPENSE = Financial Statement When you pay more than you owe, you get credit When you pay less than you owe you get debit