Under the liability approach,the full change in the amount of future liability is recognized as an increase or decrease in income tax expense in the year the

A) tax rate change is debated.
B) tax law is proposed.
C) tax law becomes effective.
D) tax law is enacteD.

Tax Law

Tax law encompasses the rules, policies, and regulations that oversee the tax process for individuals, businesses, and other entities, determining how taxes are calculated, collected, and managed.

Liability Approach

A method in accounting where emphasis is placed on accruing all expected future costs and obligations.

Income Tax Expense

The total amount of income tax a company owes to the government for a specified period, reflected in its financial statements.