What is true when income for tax purposes is higher than accounting income? (a) Actual income...
What is true when income for tax purposes is higher than accounting income?
(a) Actual income taxes payable will be the same as accounting income tax expense
(b) Actual income taxes payable will be higher than accounting income tax expense
(c) Actual income taxes payable will be lower than accounting income tax expense
(d) Actual income taxes expense is the same as actual income tax payable.
The income reported in the statement of profit or loss before paying any tax expense for a particular year is called accounting income. It is the result of operations carried out in the business and is determined by using the accrual accounting concept.
Answer and Explanation: 1
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Option (b) is the correct answer.
When income for tax purposes is higher than the accounting income, the actual income taxes will be greater than the...
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fromChapter 8 / Lesson 2
Discover how to calculate the corporate taxable financial income for a business. Examine what corporate taxable income is, review gross income, view expenses and deductions, explore specially treated items, and see the relationship to accounting.
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