The amount of tax assessed by the ATO based on the entity's operations for the period will be reflected in which account?

Question

Quizplus · Accepted Answer

The tax assessed by the ATO is a current tax liability and is reflected in the income tax payable account. The income tax expense account is used to record the tax expense for the period based on accounting standards, while deferred income tax and deferred tax liability accounts are used for differences between accounting and tax bases of assets and liabilities.

The Amount of Tax Assessed by the ATO Based on the Entity's