Which statement best describes the relationship between the two types of profits?

Question

Quizplus · Accepted Answer

Taxable profits and accounting profits are not the same. Taxable profits refer to the profits that are subject to taxation and are determined based on the applicable tax laws and regulations. Accounting profits, on the other hand, refer to the profits that a company reports in its financial statements based on the accounting standards and principles. The two types of profits can differ due to various reasons, such as differences in the timing of revenue recognition, expenses, and tax deductions.

Which Statement Best Describes the Relationship Between the Two Types