Taxable income times the tax rate equals:

Question

Quizplus · Accepted Answer

Taxable income multiplied by the tax rate equals taxes payable, which is the amount of taxes owed to the government for the current year. Tax expense refers to the amount of taxes recorded on a company's financial statements, which may not necessarily equate to the taxes payable. Deferred taxes relate to temporary differences between the financial statement and tax basis of assets and liabilities. None of these options accurately represent the equation given.

Taxable Income Times the Tax Rate Equals