Which of the following statements is NOT true concerning the determination of the effective tax rate to be used for interim reporting?
A) Tax rate changes should not be accounted for retroactively.
B) The effective tax rate for the entire year should be estimated.
C) The effective tax rate should reflect anticipated tax credits.
D) The estimated tax rate should reflect extraordinary items.

Question

Quizplus · Accepted Answer

The estimated tax rate should not reflect extraordinary items because they are separately disclosed on the income statement and not included in the calculation of income tax expense.

Which of the Following Statements Is NOT True Concerning the Determination