The basic entry to provide for company income tax at the end of the financial year is :

Question

Quizplus · Accepted Answer

The basic entry to provide for company income tax at the end of the financial year is to debit the Income tax expense account and credit the Current tax liability account. This is because income tax expense is recognized in the income statement as an expense, and the corresponding liability is recognized in the balance sheet as a current tax liability. Therefore, option D, DR Income tax expense; CR Current tax liability, is the correct basic entry to provide for company income tax at the end of the financial year.

The Basic Entry to Provide for Company Income Tax at the End