assumption made for the tax effect method of accounting for a company’s income tax
assumption made for the tax effect method of accounting for a company’s income tax
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 2GIC
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Question
The assumption made for the tax effect method of accounting for a company’s income tax is:
Select one:
A. an accounting balance sheet and a tax balance sheet are the same.
B. income tax expense is equal to income tax payable.
C. income tax expense is not equal to current tax liability.
D. a tax balance sheet is prepared according to accounting standards.
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