Some items appear on a company's income statement but never appear on its tax return.

Question

Quizplus · Accepted Answer

This is because certain accounting items such as depreciation, amortization, and interest expenses may be recognized as expenses on the income statement but are not deducted as expenses on the tax return due to different tax laws and regulations. Additionally, some income streams may be tax-exempt or deferred, leading to differences between the income statement and tax return.

Some Items Appear on a Company's Income Statement but Never