Asked by Jeremy Quinonez on May 04, 2024
Verified
Income tax expense and the related liability for income taxes payable are recorded when taxes are paid.
Income Tax Expense
The total amount of income tax that a company is obliged to pay to tax authorities, based on its earnings.
Taxes Payable
The amount of tax liability a company or individual owes to a tax authority but has not yet paid.
- Comprehend the function and depiction of income tax expense within corporate financial statements.
Verified Answer
PN
Princess NessaMay 05, 2024
Final Answer :
False
Explanation :
Income tax expense and the related liability for income taxes payable are recorded in the same period as the related revenues and expenses, regardless of when taxes are paid.
Learning Objectives
- Comprehend the function and depiction of income tax expense within corporate financial statements.
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