If a company uses the taxes payable method of calculating income tax expense, which of the following statements would be true?
A)The income tax expense would be equal to the income taxes payable.
B)The income tax expense would be greater than the income taxes payable.
C)The income tax expense would be less than the income taxes payable.
D)The current income tax expense would be equal to the future income tax expense.

Question

Quizplus · Accepted Answer

The taxes payable method calculates income tax expense as equal to the income taxes payable. This method records income tax expense in the same period in which income taxes payable are recorded.

If a Company Uses the Taxes Payable Method of Calculating