Under GAAP, tax expense is always computed on a cash basis.

Name: Under GAAP, tax expense is always computed on a cash basis.
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Under GAAP, tax expense is calculated using the tax laws and regulations, which may not necessarily be on a cash basis. The tax laws may permit certain deductions and allowances that are not recognized on a cash basis. Therefore, tax expense may be calculated on an accrual basis or a modified cash basis, depending on the specific tax laws and regulations being applied.

Under GAAP, Tax Expense Is Always Computed on a Cash